Indicator Notes｜$AVAX ｜1-hour open interest +11.3%｜Price +0.99%
Definition: When both buyers and sellers open new positions, open interest increases; when both close positions, it decreases; when one side opens a position while the other closes, open interest remains unchanged.
How to read it: A sharp change in open interest over a short period means that traders are building or closing positions in large numbers. Volatility often increases afterward as well.
Rare readings are usually accompanied by greater volatility. This is when you should reduce leverage rather than make a big bet.
#AVAX
Definition: When both buyers and sellers open new positions, open interest increases; when both close positions, it decreases; when one side opens a position while the other closes, open interest remains unchanged.
How to read it: A sharp change in open interest over a short period means that traders are building or closing positions in large numbers. Volatility often increases afterward as well.
Rare readings are usually accompanied by greater volatility. This is when you should reduce leverage rather than make a big bet.
#AVAX