$RSR ｜15-minute open interest +5.86%｜Price +1.74%
Before talking about capital flows, first understand open interest.
Every increase in open interest means someone is opening a long position while someone else is opening a short position, so the idea that “a sharp rise in open interest means the market is bullish” is a common misconception.
A rapid change in open interest over a short period means that traders are opening or closing positions in large numbers, and the resulting price swings often grow larger too.
Don’t let a single indicator throw off your strategy, and never gamble on a hunch with borrowed money.
Before talking about capital flows, first understand open interest.
Every increase in open interest means someone is opening a long position while someone else is opening a short position, so the idea that “a sharp rise in open interest means the market is bullish” is a common misconception.
A rapid change in open interest over a short period means that traders are opening or closing positions in large numbers, and the resulting price swings often grow larger too.
Don’t let a single indicator throw off your strategy, and never gamble on a hunch with borrowed money.