Open Interest: What It Actually Tells You
Open Interest (OI) shows how much money is currently in futures positions.
• OI rising + price rising → new longs entering
• OI rising + price falling → new shorts entering
• OI dropping → positions closing (profit, loss, or fear)
Big moves often start after OI gets crowded.
Too much leverage = higher chance of liquidation.
Price moves charts.
Open Interest shows risk behind the move.
Watch both, not just candles.
Not financial advice.