Market Notes｜$AIN ｜15-minute position size +2.83%｜Price +0.32%
First, the definition: rising open interest indicates that new positions are being opened, while falling open interest means positions are being closed, either voluntarily or through forced liquidation.
Next, how to read it: rising prices with falling open interest are generally interpreted as short covering, while falling prices with falling open interest are often seen as longs exiting through stop-losses. These are rules of thumb, not definitive conclusions.
Any data only summarizes price movements that have already occurred; prices can just as easily move in the opposite direction.
First, the definition: rising open interest indicates that new positions are being opened, while falling open interest means positions are being closed, either voluntarily or through forced liquidation.
Next, how to read it: rising prices with falling open interest are generally interpreted as short covering, while falling prices with falling open interest are often seen as longs exiting through stop-losses. These are rules of thumb, not definitive conclusions.
Any data only summarizes price movements that have already occurred; prices can just as easily move in the opposite direction.