OPEN INTEREST DIVERGENCE cryptocurrency

The indicator of open interest is a little used indicator in the market of crypto currency. However, this is a mistake. After all, in fact, no indicator will provide a clearer signal of confirmation of the strength of the trend or its reversal.

Open interest is one of the first indicators used to conduct technical analysis. It is not based on any formulas. It only displays the number of open positions for a given underlying asset.

An even stronger signal is the divergence of open interest and a price chart.

Divergences for a short position look at the maximum peaks of prices and open interest.

Divergences for a long position look at the lowest values

Experienced it is necessary to choose the right period of open interest, for experiment we took one of the Fibonacci numbers

The example shows how the indicator last worked

For all questions regarding the indicator - write to the e-mail address or to private messages, the indicator is for all popular coins in relation to the dollar and to BTC