$TST 1 Hourly contract open interest rose 20.45%; the price fell 5.64% over the same period.
Let's use this figure to talk about open interest.
Every open contract has both a long and a short position behind it, so open interest itself can't distinguish between longs and shorts. The number of long positions in the entire market is always equal to the number of short positions.
When the price is mostly flat but open interest rises significantly, it means both longs and shorts are adding to their positions. The likelihood of a large move afterward is often higher, but the direction is uncertain.
Understanding an indicator is about being less misled by numbers, not using it to predict whether prices will rise or fall.
#TST
Let's use this figure to talk about open interest.
Every open contract has both a long and a short position behind it, so open interest itself can't distinguish between longs and shorts. The number of long positions in the entire market is always equal to the number of short positions.
When the price is mostly flat but open interest rises significantly, it means both longs and shorts are adding to their positions. The likelihood of a large move afterward is often higher, but the direction is uncertain.
Understanding an indicator is about being less misled by numbers, not using it to predict whether prices will rise or fall.
#TST
