Here’s the joke version: $W 1-hour futures open interest rose 5.03%; prices rose 5.42% over the same period.
Open interest changed, but my position is still zero—I’m just auditing the class.
On a serious note, an increase in open interest means new positions are being opened; a decrease means positions are being closed, either voluntarily or through forced liquidation.
Understanding the indicators isn’t hard. The hard part is sticking to your rules when the market gets most exciting.
#W
Stay rational and manage your position size.
Open interest changed, but my position is still zero—I’m just auditing the class.
On a serious note, an increase in open interest means new positions are being opened; a decrease means positions are being closed, either voluntarily or through forced liquidation.
Understanding the indicators isn’t hard. The hard part is sticking to your rules when the market gets most exciting.
#W
Stay rational and manage your position size.