Open Interest (OI) indicates the total number of contracts currently open in the market.
-> It reflects whether new cash is flowing in or out.
🧠 When combined with price volatility, we can determine:
✔ Who is controlling the market (Long or Short) -> Avoid traps (bull trap / bear trap)
✔ Is the trend still strong or has it weakened?
✔ Is the market attractive, or is it just a 'false' increase or decrease due to closing positions?
✔ Catch the trend early and make more confident trades
🎯 How to apply in Futures trading
Never look at a single price → must also consider OI.
Increase while OI decreases → beware of a bull trap.
Decrease while OI increases → the market is really bearish.
OI continuously increases → the market is preparing for a major trend.
OI continuously decreases → the market is sideways or about to reverse.
#XBotGemDetector #AutoTradeBot
