Self Help Documentation
How do I interpret rising or falling Open Interest?
- Rising OI with rising price: Indicates a strong bullish trend, as new positions are being opened and prices are going up.
- Rising OI with falling price: Indicates a strong bearish trend, as new positions are being created with prices declining.
- Falling OI with rising price: Suggests a potential bullish reversal, as traders are closing positions but prices continue to rise.
- Falling OI with falling price: Indicates a weak bearish trend or a potential bottom, as traders are closing short positions.