🐋 $MAGIC 1-hour contract open interest increased by 17.4%, with a holding value of about 6.07 million USD; during the same period, price +5.3%.
Whether contract funds are flowing in or out, the most direct thing to look at is open interest, but you have to interpret this number correctly.
Open interest is usually calculated separately for each trading pair. What’s shown here is the open interest on Binance U-margined perpetual contracts, not the total across all platforms.
The base level of open interest varies a lot from coin to coin. It’s not uncommon for small-cap coins to swing by several tens of percent within one or two hours; for mainstream coins, changes of the same magnitude are much rarer.
Indicators can fail, so stop-losses should not be skipped: figuring out in advance what to do if your judgment is wrong matters more than guessing right or wrong.
#MAGIC
For reference only. Use at your own risk.
Whether contract funds are flowing in or out, the most direct thing to look at is open interest, but you have to interpret this number correctly.
Open interest is usually calculated separately for each trading pair. What’s shown here is the open interest on Binance U-margined perpetual contracts, not the total across all platforms.
The base level of open interest varies a lot from coin to coin. It’s not uncommon for small-cap coins to swing by several tens of percent within one or two hours; for mainstream coins, changes of the same magnitude are much rarer.
Indicators can fail, so stop-losses should not be skipped: figuring out in advance what to do if your judgment is wrong matters more than guessing right or wrong.
#MAGIC
For reference only. Use at your own risk.