Technical Note | $ICNT | 1-hour open interest +5.19% | Price +4.96%
Definition: An increase in open interest means new positions are being opened; a decrease means positions are being closed, either voluntarily or through liquidations.
How to read it: A sharp drop in open interest often occurs after intense volatility. It means some leverage has been flushed out, and sentiment may cool afterward.
Indicators may be inaccurate, but risk management is essential: deciding in advance what to do if you're wrong matters more than whether your prediction is right.
Definition: An increase in open interest means new positions are being opened; a decrease means positions are being closed, either voluntarily or through liquidations.
How to read it: A sharp drop in open interest often occurs after intense volatility. It means some leverage has been flushed out, and sentiment may cool afterward.
Indicators may be inaccurate, but risk management is essential: deciding in advance what to do if you're wrong matters more than whether your prediction is right.