Technical Note | $ICNT | 15-minute open interest +5.37% | Price +2.48%
First, a definition: Every new position necessarily has both a long and a short, so the idea that “rising open interest means bullish” is a common misconception.
Next, how to read it: The higher the open interest, the greater the impact of contract positions on price. A sharp move could trigger a cascade of liquidations.
Don’t change your usual approach based on a single number, and definitely don’t gamble on one reading with borrowed money.
#ICNT
First, a definition: Every new position necessarily has both a long and a short, so the idea that “rising open interest means bullish” is a common misconception.
Next, how to read it: The higher the open interest, the greater the impact of contract positions on price. A sharp move could trigger a cascade of liquidations.
Don’t change your usual approach based on a single number, and definitely don’t gamble on one reading with borrowed money.
#ICNT