Price can lie. Open interest rarely does.
Here's the rule disciplined traders never break: never read a price move without checking whether open interest is rising or falling alongside it. Price up with open interest climbing means fresh money is entering, real conviction building the trend. Price up with open interest falling means shorts are getting squeezed out, not new buyers stepping in — that move can run out of fuel fast. Same logic works in reverse for downtrends.
Watch how often a "breakout" is just positions unwinding, not new belief forming.
Next time you spot a sharp move, what does the open interest say about who's actually behind it?
$DOGE $AVAX $LINK #Trading #TradingEducation #Crypto #TA
Follow for daily trading education · Education only, not financial advice.
Here's the rule disciplined traders never break: never read a price move without checking whether open interest is rising or falling alongside it. Price up with open interest climbing means fresh money is entering, real conviction building the trend. Price up with open interest falling means shorts are getting squeezed out, not new buyers stepping in — that move can run out of fuel fast. Same logic works in reverse for downtrends.
Watch how often a "breakout" is just positions unwinding, not new belief forming.
Next time you spot a sharp move, what does the open interest say about who's actually behind it?
$DOGE $AVAX $LINK #Trading #TradingEducation #Crypto #TA
Follow for daily trading education · Education only, not financial advice.