Market Notes｜$GTC ｜15-minute open interest +4.12%｜Price +4.3%
Definition: When both buyers and sellers open new positions, open interest increases; when both sides close positions, it decreases; when one side opens a position while the other closes one, open interest remains unchanged.
How to read it: If the price barely moves while open interest rises noticeably, it suggests both bulls and bears are adding to their positions. A larger price swing may then be more likely, but the direction is uncertain.
Indicators can fail, so don’t skip risk management: deciding in advance what to do if your assessment is wrong matters more than getting the prediction right.
This is not a recommendation to buy or sell in any form. You are responsible for your own gains and losses.
Definition: When both buyers and sellers open new positions, open interest increases; when both sides close positions, it decreases; when one side opens a position while the other closes one, open interest remains unchanged.
How to read it: If the price barely moves while open interest rises noticeably, it suggests both bulls and bears are adding to their positions. A larger price swing may then be more likely, but the direction is uncertain.
Indicators can fail, so don’t skip risk management: deciding in advance what to do if your assessment is wrong matters more than getting the prediction right.
This is not a recommendation to buy or sell in any form. You are responsible for your own gains and losses.