Data: $S | 15-minute open interest +100.45% | Price +0.55%
Explanation: Every increase in open interest always involves someone going long and someone else going short at the same time. So the idea that “a sharp increase in open interest means the market is bullish” is a common misconception.
How to read it: Rising prices with falling open interest are generally interpreted as short positions closing out; falling prices with falling open interest are generally interpreted as long positions closing out. These are conventional interpretations, not definitive conclusions.
Leave plenty of room when using leverage, so a single wick doesn’t wipe out your position.
#S
Explanation: Every increase in open interest always involves someone going long and someone else going short at the same time. So the idea that “a sharp increase in open interest means the market is bullish” is a common misconception.
How to read it: Rising prices with falling open interest are generally interpreted as short positions closing out; falling prices with falling open interest are generally interpreted as long positions closing out. These are conventional interpretations, not definitive conclusions.
Leave plenty of room when using leverage, so a single wick doesn’t wipe out your position.
#S