Open Interest (OI) — one of the key indicators of the futures market.

It shows the total volume of all open positions, not the direction of the price.

📊 How to read OI and price together:

🟢 Price ↑ + OI ↑

New traders with leverage are entering the market.

The risk of sharp movements and liquidations increases.

🟢 Price ↑ + OI ↓

Shorts are closing, the rise is happening without leverage.

Often a healthier and more sustainable movement.

🔴 Price ↓ + OI ↑

Accumulation of shorts or aggressive hedges.

Risk of a sharp bounce upwards.

🔴 Price ↓ + OI ↓

Capitulation. Positions are being closed, the market is clearing.

⚠️ Why this is important:

Exchanges profit from liquidations.

When OI is overheated — the market more often chooses the path where it “wipes out the crowd.”

🧠 Conclusion:

Open Interest ≠ entry signal.

It is an indicator of risk and market structure that helps avoid entering overheated movements.

#crypto #openinterest #futures #trading

I will soon make a video, in simple words🤝