Indicator Notes｜$CT ｜1-hour open interest +160.03%｜Price -2.23%
First, the definition: Open interest (OI) is the total number of contracts in the market that have not yet been closed. It measures the number of contracts, not trading volume.
A common way to read it: When open interest changes rapidly over a short period, it suggests that traders are opening or closing positions in a concentrated way, and the price swings that follow often become larger.
Indicators may be inaccurate, but risk management should never be skipped: Deciding in advance what to do if you're wrong is more important than trying to guess correctly.
First, the definition: Open interest (OI) is the total number of contracts in the market that have not yet been closed. It measures the number of contracts, not trading volume.
A common way to read it: When open interest changes rapidly over a short period, it suggests that traders are opening or closing positions in a concentrated way, and the price swings that follow often become larger.
Indicators may be inaccurate, but risk management should never be skipped: Deciding in advance what to do if you're wrong is more important than trying to guess correctly.