$UAI ｜15-minute position +11.36%｜price +37.5%
Before looking at positions, first understand open interest.
Every increase in open interest necessarily means that someone is going long and someone else is going short, so “a sharp rise in open interest means the market is bullish” is a common misconception.
If the price barely moves while open interest rises sharply, it means both bulls and bears are adding to their positions. A larger price swing may then become more likely, but its direction is uncertain.
Don’t place an order during the most volatile moment. Wait for the candlestick to close before assessing the market.
Before looking at positions, first understand open interest.
Every increase in open interest necessarily means that someone is going long and someone else is going short, so “a sharp rise in open interest means the market is bullish” is a common misconception.
If the price barely moves while open interest rises sharply, it means both bulls and bears are adding to their positions. A larger price swing may then become more likely, but its direction is uncertain.
Don’t place an order during the most volatile moment. Wait for the candlestick to close before assessing the market.