Data: $KAT ｜15-minute open interest +6.26%｜price +2.06%
Explanation: When both buyers and sellers open new positions, open interest increases; when both close positions, it decreases; when one side opens a position and the other closes one, open interest stays the same.
A common interpretation: A sharp drop in open interest often occurs after a period of intense volatility. It suggests that a significant amount of leverage has been flushed out, and short-term volatility may sometimes cool down as a result.
Multiple indicators confirming one another is more reliable than looking at just one, but even more indicators can’t provide a definitive conclusion.
Just chatting—whether you win or lose, you’re responsible for it yourself.
Explanation: When both buyers and sellers open new positions, open interest increases; when both close positions, it decreases; when one side opens a position and the other closes one, open interest stays the same.
A common interpretation: A sharp drop in open interest often occurs after a period of intense volatility. It suggests that a significant amount of leverage has been flushed out, and short-term volatility may sometimes cool down as a result.
Multiple indicators confirming one another is more reliable than looking at just one, but even more indicators can’t provide a definitive conclusion.
Just chatting—whether you win or lose, you’re responsible for it yourself.