Positioning and price divergence generally fall into three categories. This time, $Q saw open interest fall while the price rose (24-hour open interest: -16.43%; price: +107.14%):
· Open interest up, price flat: Long and short positions are both growing, suggesting a buildup phase; volatility could increase later.
· Open interest up, price down: New shorts may be pushing the price down. If short positions become too crowded, a rebound could catch them off guard.
▶ Open interest down, price up: Often driven by short covering. Whether the move continues depends on fresh money coming in to carry it forward.
Current open interest is about $57.85 million. Anyone who knows this stuff care to share their thoughts?
#Q
This is just my personal opinion and should not be taken as a basis for trading.
· Open interest up, price flat: Long and short positions are both growing, suggesting a buildup phase; volatility could increase later.
· Open interest up, price down: New shorts may be pushing the price down. If short positions become too crowded, a rebound could catch them off guard.
▶ Open interest down, price up: Often driven by short covering. Whether the move continues depends on fresh money coming in to carry it forward.
Current open interest is about $57.85 million. Anyone who knows this stuff care to share their thoughts?
#Q
This is just my personal opinion and should not be taken as a basis for trading.