Not necessarily. While a decrease in OI can indicate that traders are closing their positions, which may signal a weakening trend, it doesn’t always lead to a reversal. The context…

Yes, Open Interest can be useful in identifying potential short squeezes. When there is a high level of short positions (a large OI in put options or short futures contracts)…

Rising Open Interest, especially in options, is often associated with increasing volatility, particularly when combined with large price movements. A sudden rise in OI during a volatile market could suggest…