OI & Price Change Interpretation

Price Open Interest Interpretation Increase in Price Increase in Open Interest Indicates new money entering the market and suggests a continuation of the uptrend. Increase in Price Decrease in Open Interest Price increase is likely due to short covering of positions. Decrease in Price Increase in Open Interest Price decline is due to newly built short positions, indicating further weakness. Decrease in Price Decrease in Open Interest Traders are unwinding long positions by selling existing contracts.