$T ｜1-hour open interest +108.54%｜Price +61.53%
Before looking at positions, first understand open interest.
Every increase in open interest necessarily involves both someone going long and someone going short, so the idea that “rising open interest means a bullish signal” is a common misconception.
If open interest rises but spot trading volume doesn’t keep up, the rally may be driven more by futures trading. These moves often rise quickly and fall just as quickly.
Don’t chase trades during the most volatile few minutes. Wait for the candlestick to close and settle before deciding.
Before looking at positions, first understand open interest.
Every increase in open interest necessarily involves both someone going long and someone going short, so the idea that “rising open interest means a bullish signal” is a common misconception.
If open interest rises but spot trading volume doesn’t keep up, the rally may be driven more by futures trading. These moves often rise quickly and fall just as quickly.
Don’t chase trades during the most volatile few minutes. Wait for the candlestick to close and settle before deciding.