$ICNT 1-hour futures open interest increased by 14.77%; the price rose 6.8% over the same period.
Let’s use this data to talk about open interest.
Futures open interest reflects both speculative and hedging demand; some positions are simply used to hedge spot-market risk.
A rising price with falling open interest is generally interpreted as short covering driving the move, while a falling price with falling open interest is generally interpreted as longs closing out. These are rules of thumb, not definitive conclusions.
Before taking on leveraged positions, think about whether you can handle the worst-case scenario; only then consider what the signals are telling you.
#ICNT
Just a casual note—make your own call on what to do.
Let’s use this data to talk about open interest.
Futures open interest reflects both speculative and hedging demand; some positions are simply used to hedge spot-market risk.
A rising price with falling open interest is generally interpreted as short covering driving the move, while a falling price with falling open interest is generally interpreted as longs closing out. These are rules of thumb, not definitive conclusions.
Before taking on leveraged positions, think about whether you can handle the worst-case scenario; only then consider what the signals are telling you.
#ICNT
Just a casual note—make your own call on what to do.