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
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