$Q 15-minute contract open interest increased by 7.08%, with the value of open positions at about $9.67 million; meanwhile, the price fell 6.84%.
A question every beginner has: What is open interest?
Open interest and trading volume are two different things: trading volume measures how much has changed hands over a period of time, while open interest shows how many contracts are still open at this moment.
A rising price with falling open interest is often seen as being driven by short covering, while a falling price with falling open interest is generally interpreted as longs closing out at a loss. These are just interpretations, not conclusions.
Cross-checking several data points is more reliable than looking at just one, but even a whole range of indicators can’t provide a definitive answer.
#Q
Markets move fast, so don’t rush to conclusions.
A question every beginner has: What is open interest?
Open interest and trading volume are two different things: trading volume measures how much has changed hands over a period of time, while open interest shows how many contracts are still open at this moment.
A rising price with falling open interest is often seen as being driven by short covering, while a falling price with falling open interest is generally interpreted as longs closing out at a loss. These are just interpretations, not conclusions.
Cross-checking several data points is more reliable than looking at just one, but even a whole range of indicators can’t provide a definitive answer.
#Q
Markets move fast, so don’t rush to conclusions.
