$ICNT 15 minutes: Open interest surged 4.59%
Don't rush into a trade—understand open interest first.
Open interest increases when both buyers and sellers open new positions; it decreases when both sides close positions; and it stays the same when one side opens a position while the other closes one.
If the price is mostly flat while open interest rises sharply, it means both bulls and bears are adding positions. A larger price move is often more likely afterward, but its direction is uncertain.
Comparing multiple data points is more reliable than looking at just one, but even multiple signals can't provide a definitive answer.
This is not investment advice. Don't follow this as a trading instruction.
Don't rush into a trade—understand open interest first.
Open interest increases when both buyers and sellers open new positions; it decreases when both sides close positions; and it stays the same when one side opens a position while the other closes one.
If the price is mostly flat while open interest rises sharply, it means both bulls and bears are adding positions. A larger price move is often more likely afterward, but its direction is uncertain.
Comparing multiple data points is more reliable than looking at just one, but even multiple signals can't provide a definitive answer.
This is not investment advice. Don't follow this as a trading instruction.