$PTB 15 Contract open interest increased by 6.39%, with an open interest value of approximately $2.04 million; the price rose 0.78% over the same period.
Let's use this figure to talk about open interest.
Open interest is not the same as capital flows: an increase in open interest only means there are more open positions in the contracts. It doesn't tell us where the money came from or which direction it's betting on.
If the price barely moves while open interest rises significantly, it means both bulls and bears are placing bets. The likelihood of a larger move afterward is usually higher, but the direction is uncertain.
Understanding an indicator helps us avoid being misled by the numbers; it isn't a way to predict tops and bottoms.
#PTB
Let's use this figure to talk about open interest.
Open interest is not the same as capital flows: an increase in open interest only means there are more open positions in the contracts. It doesn't tell us where the money came from or which direction it's betting on.
If the price barely moves while open interest rises significantly, it means both bulls and bears are placing bets. The likelihood of a larger move afterward is usually higher, but the direction is uncertain.
Understanding an indicator helps us avoid being misled by the numbers; it isn't a way to predict tops and bottoms.
#PTB