Open Interest Explained
Open interest measures outstanding derivatives positions. Rising open interest can confirm participation, but it must be read together with price and spot activity.
Practical interpretation
Use this metric as one part of a wider process that includes structure, liquidity, derivatives, spot participation, risk and invalidation. No single indicator should create an A-grade setup by itself.
Common mistake
Traders often confuse context with confirmation. The terminal is designed to separate a possible scenario from an actionable, confirmed setup.
Educational content only; not financial advice.