$BTW 15-minute contract open interest increased by 7.39%, with an open interest value of approximately $25.23 million; during the same period, the price fell 1.16%.
Let’s use this figure to break down open interest.
An increase in open interest means new positions are entering the market, while a decrease means positions are exiting. This includes both voluntary closures and forced liquidations.
Rising prices with falling open interest are often seen as being driven by short covering, while falling prices with declining open interest are often seen as longs exiting via stop-losses. These are all speculations, not conclusions.
Several indicators corroborating one another is more reliable than looking at just one, but even multiple signals cannot provide a definitive conclusion.
#BTW
Let’s use this figure to break down open interest.
An increase in open interest means new positions are entering the market, while a decrease means positions are exiting. This includes both voluntary closures and forced liquidations.
Rising prices with falling open interest are often seen as being driven by short covering, while falling prices with declining open interest are often seen as longs exiting via stop-losses. These are all speculations, not conclusions.
Several indicators corroborating one another is more reliable than looking at just one, but even multiple signals cannot provide a definitive conclusion.
#BTW
