$KAVA 1-hour contract open interest rose 9.23%; price fell 3.71% over the same period.
Let’s use this figure to break down open interest.
Open interest reflects the size of positions in contracts: the larger the open interest, the more positions may be liquidated when prices move sharply.
Rising prices alongside rising open interest are often seen as active entry by bulls, while falling prices alongside rising open interest are often interpreted as active entry by new short sellers.
Don’t chase trades during the most volatile minutes; wait for the candlestick to settle before deciding.
Let’s use this figure to break down open interest.
Open interest reflects the size of positions in contracts: the larger the open interest, the more positions may be liquidated when prices move sharply.
Rising prices alongside rising open interest are often seen as active entry by bulls, while falling prices alongside rising open interest are often interpreted as active entry by new short sellers.
Don’t chase trades during the most volatile minutes; wait for the candlestick to settle before deciding.