$CT 5-minute contract open interest rose 4.91%; the price rose 4.54% over the same period.
How is this figure calculated?
Open interest and trading volume are two different things: trading volume is how much was traded over a period of time, while open interest is how many positions are still open right now.
If open interest rises but spot buying doesn't keep up, the market may be relying mainly on leverage. Moves like this often come quickly and go just as quickly.
Don't change your original approach because of a single indicator, and especially don't gamble borrowed money on a reading.
#CT
Just my personal opinion—take it for what it's worth; this isn't advice.
How is this figure calculated?
Open interest and trading volume are two different things: trading volume is how much was traded over a period of time, while open interest is how many positions are still open right now.
If open interest rises but spot buying doesn't keep up, the market may be relying mainly on leverage. Moves like this often come quickly and go just as quickly.
Don't change your original approach because of a single indicator, and especially don't gamble borrowed money on a reading.
#CT
Just my personal opinion—take it for what it's worth; this isn't advice.