Indicator Notes｜$UAI ｜1-hour open interest +21.65%｜Price -32.81%
Definition: Open interest is generally calculated separately for each contract. Here, it refers to open interest in Binance USDT-margined perpetual contracts, not the total across the entire market.
How to read it: A price rise with falling open interest is generally interpreted as shorts closing their positions and exiting; a price drop with falling open interest is generally interpreted as longs being stopped out and exiting. These are interpretations, not definitive conclusions.
Understanding an indicator is about being less intimidated by the numbers, not using it to pinpoint tops and bottoms.
Definition: Open interest is generally calculated separately for each contract. Here, it refers to open interest in Binance USDT-margined perpetual contracts, not the total across the entire market.
How to read it: A price rise with falling open interest is generally interpreted as shorts closing their positions and exiting; a price drop with falling open interest is generally interpreted as longs being stopped out and exiting. These are interpretations, not definitive conclusions.
Understanding an indicator is about being less intimidated by the numbers, not using it to pinpoint tops and bottoms.