Showing posts with the label Open interest (OI) & price of a stock

Interpretation of open interest (OI) & price change of a stock

Based on open interest & price change data of a stock, the price trend of the stock is correlated as: Price Open Interest Price trend Increase Increase Increase (More buyers & long build-up) Increase Decrease Increase (Short positions covering)  Decrease Increase Decrease (More short positions build-up)  Decrease Decrease Decrease ( Long unwinding Buyers become sellers)