# xbot

208
Why is Open Interest important?
Open Interest (OI) indicates the total number of open contracts in the market.
-> It reflects whether new money is flowing in or out.
🧠 When combined with price volatility, we can determine:
✔ Who is controlling the market (Long or Short) -> Avoid bull trap / bear trap(
✔ Is the trend still strong or weakening
✔ Is the market attractive, or just “fake” movements caused by closing positions
✔ Catch the trend early and enter more confidently
🎯 How to apply this in Futures trading
Never look at price alone → always consider OI.
Rising OI while price decreases → b
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