🗂️ Data snapshot: $CTK ｜15-minute open interest +5.22%｜price +2.17%
· What it is: Open interest is not an inflow of funds. An increase in open interest only means that the number of open positions in the contracts has grown. It can’t tell you who the funds belong to or whether they’re bullish or bearish.
· How to read it: A sharp short-term change in open interest means someone is opening or closing positions in a concentrated way, and volatility often increases afterward.
Learning to read indicators isn’t hard; the hard part is still following the rules when the market gets extreme.
· What it is: Open interest is not an inflow of funds. An increase in open interest only means that the number of open positions in the contracts has grown. It can’t tell you who the funds belong to or whether they’re bullish or bearish.
· How to read it: A sharp short-term change in open interest means someone is opening or closing positions in a concentrated way, and volatility often increases afterward.
Learning to read indicators isn’t hard; the hard part is still following the rules when the market gets extreme.