$AGT Open interest in 15-minute contracts increased by 21.72%; the price rose 11.37% over the same period.
Let’s use this figure to break down open interest.
Every open contract has both a long and a short position, so open interest alone cannot distinguish between longs and shorts. Across the entire market, the total number of long positions always equals the total number of short positions.
A price rise with declining open interest is generally interpreted as shorts closing their positions; a price drop with declining open interest is generally interpreted as longs closing theirs. These are empirical interpretations, not definitive conclusions.
Calculating your order size backward from where you’ll place your stop-loss is much more reliable than guessing.
#AGT
Let’s use this figure to break down open interest.
Every open contract has both a long and a short position, so open interest alone cannot distinguish between longs and shorts. Across the entire market, the total number of long positions always equals the total number of short positions.
A price rise with declining open interest is generally interpreted as shorts closing their positions; a price drop with declining open interest is generally interpreted as longs closing theirs. These are empirical interpretations, not definitive conclusions.
Calculating your order size backward from where you’ll place your stop-loss is much more reliable than guessing.
#AGT