How do u explain then this chart. Open interest is going down from 2nd Octuber.

Short Covering (Unwinding) Price up y OI Down Here the price increases with the OI decreasing. This means that the people who had entered into a short position are closing their entries. This generally occurs after the price has made a substantial correction. The Open interest data when studied with Price movement, becomes a very strong indicator to be used with Price Action Trading.

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