Net open interest and number of traders

You can find the following items in net OI bar chart

1. Flip
2. Extremes
3. Positioning Trend

Flip : net bullish to net bearish or net bearish to net bullish change in positioning is flip.
Extreme : We can also find extremes in net OI bar chart and net number of traders by three years rolling STD
Positioning trend : We can study the trend change by using net OI bar chart.

Application

Open Interest net chart is a tool to give you more insight into the traders’ behavior and can be a good gauge to utilize alongside our other COT signals as a confirmation or refining tool.

Examples

In this example for DXY the flips, extremes and trends are highlighted.

For financial markets we have two important speculators “Leveraged Funds and Asset Managers”. If their view of markets are aligned it can be a more qualified COT signal.

DXY

Select the payment plan inside the popup. $10/Month or $100/Year

Get Free Trial