Price increase + position increase = long position opening
Price increase + open interest decrease = short position closing
Price falls + OI (Open Interest) rises = short position opened
Falling price + falling open interest = liquidation of long positions
Why should we watch OI?
Casino rules: 10 people, 5 are long, 5 are short
The banker will eat both sides
If more than half of the people bet on one side, they will definitely eat up the majority.
If no one places a bet
That banker will attract people to place bets
How to attract people to bet?
A big positive line
Example: