$CYBER |15-minute open interest +5.01%|Price +6.13%
Before looking at money flows, first understand open interest.
An increase in open interest doesn’t mean money is flowing in: it only means the positions held in contracts have grown. It doesn’t tell you where the money came from or whether it’s bullish or bearish.
If the price is mostly flat while open interest rises noticeably, it means both sides are adding to their positions. A larger move is usually more likely to follow, but the direction is still uncertain.
Don’t change your strategy based on a single indicator, and never use borrowed money to test what a reading means.
This could be wrong too; don’t take it as advice.
Before looking at money flows, first understand open interest.
An increase in open interest doesn’t mean money is flowing in: it only means the positions held in contracts have grown. It doesn’t tell you where the money came from or whether it’s bullish or bearish.
If the price is mostly flat while open interest rises noticeably, it means both sides are adding to their positions. A larger move is usually more likely to follow, but the direction is still uncertain.
Don’t change your strategy based on a single indicator, and never use borrowed money to test what a reading means.
This could be wrong too; don’t take it as advice.
