Market Notes | $ICNT | 15-minute open interest +5.02% | Price +3.13%
First, a definition: every new position has both a long and a short, so the idea that “rising open interest means bullish sentiment” is a common misconception.
How to read it: rising prices with falling open interest are often seen as being driven by shorts closing their positions, while falling prices with falling open interest are generally understood as longs closing theirs. These are interpretations, not conclusions.
Before trading with leverage, first consider whether you can withstand the worst-case scenario, then look at what the indicators are saying.
Do your homework before placing an order.
First, a definition: every new position has both a long and a short, so the idea that “rising open interest means bullish sentiment” is a common misconception.
How to read it: rising prices with falling open interest are often seen as being driven by shorts closing their positions, while falling prices with falling open interest are generally understood as longs closing theirs. These are interpretations, not conclusions.
Before trading with leverage, first consider whether you can withstand the worst-case scenario, then look at what the indicators are saying.
Do your homework before placing an order.