Lesson 5 of 11
In Progress

Open interest

Open interest

·  Open interest is the number of all opened outstanding contracts in the market, such as options and futures.

·  Pay attention if the OI is inclining or declining/ if the money is flowing in or out.

Incline = new positions are coming into the market/money are flowing into the market.

Decline = positions are being closed/money are flowing out of the market.

With OI we can be confirming if the move has it’s “strentgh” or not.

OI with SFP

If you see OI decrease on SFP candle, theory behind SFP is confirmed.