$ICNT ｜15-minute open interest +5.02%｜Price +3.13%
Before looking at positions, first understand open interest.
Open interest is not capital inflow: an increase in open interest only means there are more open positions in the contracts. It cannot tell you where the money came from or which direction it is moving.
A rising price with falling open interest is generally interpreted as being driven by short covering; a falling price with falling open interest is often seen as longs exiting via stop-losses. These are interpretations, not definitive conclusions.
The point of understanding an indicator is to avoid being misled by a single number, not to use it to predict whether prices will rise or fall.
#ICNT
Before looking at positions, first understand open interest.
Open interest is not capital inflow: an increase in open interest only means there are more open positions in the contracts. It cannot tell you where the money came from or which direction it is moving.
A rising price with falling open interest is generally interpreted as being driven by short covering; a falling price with falling open interest is often seen as longs exiting via stop-losses. These are interpretations, not definitive conclusions.
The point of understanding an indicator is to avoid being misled by a single number, not to use it to predict whether prices will rise or fall.
#ICNT