Complete guide to trading with Open interest | Tradingriot

Summary

In this informative video, the speaker explores the significance of open interest in crypto trading, highlighting its role as a popular indicator for market movement analysis. They discuss various ways to utilize open interest, such as identifying new directional bets and market sentiment, and demonstrate practical applications with examples like Solana and Phantom. The speaker also recommends several TradingView indicators and the EXO charts platform for visualizing open interest, emphasizing their use as complementary tools to enhance trading strategies rather than as standalone solutions.

Takeaways

• 😀 The video discusses the importance of open interest in trading cryptocurrencies, explaining how it reflects new directional bets entering the market.
• 🔍 The speaker recommends visiting tradingground.com for free educational content on trading strategies and indicators.
• 📈 Open interest rising with price movement indicates new market participants are entering positions, which can signal market strength.
• 📉 Conversely, falling open interest can suggest that traders are closing their positions, often a sign of weakening momentum.
• 💡 The speaker suggests using open interest in conjunction with other indicators and price action for a more comprehensive trading strategy.
• 📊 TradingView is highlighted as a platform that offers various tools to visualize and analyze open interest, including the Aggregated Open Interest indicator.
• 📝 The video mentions a PDF guide available for those who create a new account on BuyBit or Binance and email the speaker, covering basics of trading altcoin derivatives.
• 📉 The speaker illustrates using Solana as an example, showing how a high open interest at resistance levels can be a good opportunity to short the market.
• 🌐 EXO charts are introduced as a tool that includes open interest data within their footprint charts, providing detailed insights into market movements.
• 📌 The video emphasizes the importance of time frames in trading, suggesting that open interest analysis can be applied to different time frames depending on the trading strategy.

Q & A

What is the main topic of the video?

The main topic of the video is the open interest in the context of trading cryptocurrencies.

What is open interest and why is it important in trading?

Open interest refers to the total number of outstanding derivative contracts or positions in the market at a given time. It is important in trading because it indicates the level of new directional bets entering the market, which can signal new supply or demand and potentially influence price movements.

What is the website mentioned in the video for learning about trading strategies?

The website mentioned for learning about trading strategies is tradingground.com.

How can one access the PDF mentioned in the video?

To access the PDF, one needs to create a new account on Buy Bit or Binance using the link provided in the video description, make a first-time deposit, and then send an email to [email protected].

What is the significance of rising open interest in relation to price movement?

Rising open interest in conjunction with price movement indicates that new directional longs or shorts are opening positions, suggesting increased market participation and potentially a stronger trend.

What does it mean when open interest decreases while the price is moving in a particular direction?

A decrease in open interest while the price is moving suggests that traders are closing their positions, often not by choice, which can indicate a lack of conviction in the ongoing trend.

What is an example of how the speaker uses open interest in their trading strategy?

The speaker uses open interest to identify situations where the market rallies towards a resistance level with a high increase in open interest but fails to break through. This can signal a good opportunity to go short as those who bought on the way up are trapped in their positions.

What is the difference between the basic open interest indicator and the one provided by Spaceman on TradingView?

The basic open interest indicator on TradingView plots the open interest for a specific exchange like Binance Perpetual. Spaceman's indicator auto-matches the open interest to the chart, allowing it to display correctly even when using different exchange charts like Coinbase.

What does the open interest Delta indicator show?

The open interest Delta indicator shows the rate of change of open interest, with large increases represented by large green candles and large decreases by large red candles.

What is the Range Analysis indicator and how is it used in the video?

The Range Analysis indicator is used to analyze price action within a specified range. It can be used to identify significant changes in open interest and to validate trading ideas by looking for confluence with support and resistance levels.

How does the speaker suggest using the open interest data from EXO charts?

The speaker suggests using the open interest data from EXO charts to get a detailed view of new directional longs and shorts stepping into the market, which can help validate trading ideas and provide confidence in trade execution.

Outlines

00:00

📈 Introduction to Open Interest in Crypto Trading

The speaker begins by introducing the topic of open interest as an important indicator in crypto trading. They mention their personal use of open interest and its significance. The speaker also promotes their website, tradingground.com, which offers free educational content and a paid trading bootcamp. They discuss a PDF they created covering basics of trading altcoin derivatives and offer it to new registrants on certain platforms who email them. The main focus is on how rising or falling open interest correlates with market direction and new directional bets, and how it can signal market movements.

05:02

📊 Basic Use of Open Interest in TradingView

The speaker explains how they use open interest to validate trading ideas, starting with a simplified version on TradingView. They demonstrate how to plot open interest on a chart and discuss the significance of changes in open interest in relation to price action. They use Solana as an example to illustrate how a high increase in open interest at a resistance level can signal a good opportunity to short, as it indicates many buyers are trapped and may lead to a price drop as they cover their positions.

10:04

💹 Advanced Open Interest Analysis with Range Analysis

The speaker delves into advanced analysis using the Range Analysis tool on TradingView, which combines open interest data with price action. They show how to set up the tool and interpret the results, using Phantom as an example. The analysis helps to identify potential entry points for trades based on significant increases in open interest, which can indicate a high likelihood of price continuation in the direction of the open interest movement.

15:05

🚀 Using Open Interest with EXO Charts

The speaker introduces the use of open interest within EXO Charts, a platform that includes open interest data in its footprint child profile. They discuss the benefits of using this tool for higher time frames and how it can provide a detailed view of market movements, including new directional longs and shorts. The speaker also mentions the net longs and shorts indicator, which shows the flow of new positions and exits, enhancing the trader's understanding of market sentiment.

20:05

📉 Open Interest for Shorting Opportunities

The speaker discusses how open interest can be used to identify shorting opportunities. They use examples from the market, such as Solana and Avax, to show how new directional longs entering the market at high levels can lead to shorting opportunities when the market fails to continue upwards. The speaker emphasizes the importance of understanding time frames and how they affect trade holding periods, suggesting that certain open interest patterns are better suited for short-term day trading rather than long-term holding.

25:07

🌟 Conclusion on Utilizing Open Interest

In conclusion, the speaker summarizes their approach to using open interest as a validation tool for trading ideas, rather than as a sole indicator. They stress the importance of combining open interest analysis with other tools like price action, volume analysis, and order flow to increase confidence in trades. The speaker also encourages viewers to experiment with the tools and indicators they've discussed, particularly the advanced features in EXO Charts, to enhance their trading strategies.

Keywords

💡Open Interest

Open interest refers to the total number of outstanding derivative contracts, such as futures or options, that have not been settled. In the context of the video, it is an important indicator used in trading cryptocurrencies. It signifies the number of new directional bets (longs or shorts) entering the market, which can indicate new supply or demand. For instance, when the price is moving up or down and open interest is rising, it suggests new market participants are taking positions, which can reinforce the trend.

💡Cryptocurrency

Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates on a decentralized system, such as blockchain. The video discusses trading cryptocurrencies, particularly focusing on how to use open interest as an indicator for trading decisions. The presenter mentions trading strategies and tools specific to crypto markets, emphasizing the unique aspects of this asset class.

💡TradingView

TradingView is a popular web-based platform for traders and investors to analyze financial markets and create technical charts. In the video, the presenter uses TradingView to demonstrate how to apply open interest indicators to cryptocurrency charts. It is highlighted as a tool for visualizing market data and making informed trading decisions.

💡Derivatives

Derivatives are financial instruments whose value is derived from underlying assets, such as stocks, bonds, commodities, or currencies. In the script, derivatives like futures and options on cryptocurrencies are mentioned as vehicles where open interest plays a crucial role. The presenter discusses how to interpret changes in open interest in the context of derivative trading.

💡Market Makers

Market makers are entities or individuals that provide liquidity to a market by facilitating trades by buying and selling assets. They are mentioned in the video as participants who might be involved in creating new directional trades, affecting open interest. Their actions can influence market dynamics and provide insights into market sentiment.

💡Support and Resistance (S/R)

Support and resistance levels are price points in a financial market that act as price barriers. In the video, the presenter discusses how open interest can be used in conjunction with S/R levels to identify potential trading opportunities. For example, a failure to break a resistance level with high open interest could indicate a good opportunity to short the market.

💡Liquidations

Liquidations in the context of trading refer to the forced closure of a trader's position when the market moves against them, and their margin is insufficient. The video script mentions liquidations in relation to how open interest can signal upcoming liquidations, which can lead to significant price movements.

💡Funding Rate

The funding rate in perpetual futures markets is a fee paid by one party to another, typically from short to long positions, exchanged on an 8-hour cycle. While not directly mentioned in the script, understanding funding rates is crucial for traders using open interest, as it can influence the cost of holding positions and impact trading strategies.

💡Price Action

Price action refers to the movement of prices on a chart and the study of price movement to make trading decisions. The video emphasizes using open interest in conjunction with price action analysis to validate trading ideas. For example, a rise in open interest with a bullish price movement can confirm the strength of the uptrend.

💡Confluence

Confluence in trading refers to the simultaneous occurrence of multiple technical indicators or patterns that suggest the same market outlook. The video script mentions using open interest as a form of confluence with other indicators like volume and price action to increase the confidence in a trade setup.

💡EXO Charts

EXO Charts is a trading tool that provides advanced charting and analytics for cryptocurrency traders. The video mentions a new feature in EXO Charts that incorporates open interest into the footprint charts, offering traders a more detailed view of market activity. This tool is used to analyze and visualize open interest alongside other data points.

Highlights

Introduction to open interest as a popular indicator in crypto trading

The importance of open interest in understanding market direction

How rising open interest correlates with new directional bets in the market

The significance of decreasing open interest and its impact on market behavior

Basic example of using open interest to identify short opportunities in Solana

Complementing open interest with personal trading systems

Using open interest in conjunction with price action and other indicators

Explaining different ways to visualize open interest on TradingView

The value of aggregated open interest from major exchanges

How to use open interest to validate trading ideas with support and resistance levels

The concept of open interest delta and its visualization

Introducing Range Analysis for open interest to find potential trade entries

Using EXO charts for a detailed view of open interest and trading opportunities

The practical application of open interest in different time frames for various trading strategies

How open interest can be used to increase trade size and confidence

Final thoughts on the role of open interest in overall trading strategy

Transcripts

okay hi everyone and welcome to the next

video today I want to be talking about

the open interest which is uh fairly

popular indicator when it comes to

trading crypto I will be kind of showing

you how I'm using it why I feel like

it's important

and so and so forth so before we jump

into the video as always

if you head over to the

tradingground.com uh there is a bunch of

stuff on the blog you can read for free

a lot of different indicator strategies

and stuff like that covered you can

learn about that if you want to learn

how I trade you can also pick up the

trading route bootcamp you know goes

into my personal strategy it's only for

the one-time fee you get access to

private Discord updates and everything

along the line so today I will be

talking about the open interest also the

thing that I forgot to mention uh there

is a PDF I made

while ago that covers uh basics of

different concepts the tools the website

that I'm using for trading altcoin

derivatives if you want to get that make

a new account on buy bit or binance with

the link in description of make a first

time deposit and send me email at

tradingroud gmail.com and I will send

you the PDF so today I will be talking

about the open interest uh if you head

to my website there is this article

about the cryptocurrency derivatives

there is a quite in-depth explanation of

open interest uh because I don't want

this video to make uh you know to be

hour long and boring with that you just

go and read that if you don't know what

open interest exactly is but basically

this kind of a infographic you can find

here is kind of the best description I

could come up with when it comes to open

interest

um on prices uh when price is going up

or down uh and open interest is rising

it means that there are new directional

Longs or shorts opening uh directional

in the sense that you know you have a

market makers that kind of a or any

other different uh delta neutral you

know trading uh strategies and so on so

forth but with the rising open interest

it is actually like a new directional

betting coming into the market and one

open interest is decreasing uh people

are covering shorts or Longs uh often

not by their choice so uh in a simplest

way you can see the rising open interest

uh with you know price action going One

Direction or another as kind of a new

Supply or demand stepping into the

market and when open industry is going

down with the price that that you know

it's you usually a signal of people

covering their trades basically so

there are a bunch of a bunch of

different ways how you can use the open

interest I will start with this kind of

a most basic example we have a Solana

this was uh towards the end of February

you can see that market uh in this case

was kind of a rallying towards the

previous level of resistance with high

increase of the open interest but uh you

know Market wasn't basically able to

break this level of Sr we started to

falling down and this is actually your

kind of a great opportunity to go short

because all these people that were

buying on the way up are getting trapped

in their positions and once we start the

kind of breaking uh the simple

structures and especially getting under

uh the large levels of rising open

interest you know you can you can go

short and kind of bet on not only the

fact that you know Market is going down

because we hit a level of Sr but also uh

going short or based on the fact that

you know there is a large amount of

people trapped in their positions and if

they start to cover their trades you

know it should uh lead to kind of a

bigger flush in price which is basically

exactly what happened in this case so

the way that I'm using the open interest

is I just complemented with uh my kind

of personal system I know there are

people that trade this kind of solely

you know using just open interest and

um trying to follow follow the

positioning what I found is generally

better for me to kind of use it in line

with uh stuff like simple price action

some some other indicators you know the

the volume the relative volumes the

video apps and stuff around that what

I'm using so if I'm going to switch here

to trading View and I will delete this

for one second there are basically few

indicators you can use that are going to

show you the open interest the first one

this is the going allies I spoke about

going lies before so I'm not going to go

to in-depth into this but this is

basically the best kind of visualization

of the open interest you can get is this

aggregated open interest uh stablecoin

margin contracts because this is this is

aggregating the open interest from

basically all the exchanges or all the

major exchanges where the asset is

trading so you can see that you know I

have a open interest here for all these

exchanges just aggregated together uh

into one indicator so this is only going

allies if if you

and this is basically what I always use

to kind of you know validate my ideas uh

uh with the open interest you know so

uh there is a simplified version of this

uh if you are going to go to trading

view uh and let me actually delete all

the indicators here and just start with

like simple chart this is a eat a two

hour chart and I can go to indicators go

to open interest this is a basic uh open

interest indicator from Trading View and

you can see it's going to plot the open

interest uh for the binance prep chart

if I if I will go to buy and spot Market

you know or even if I will go to buy bit

a chart you know as you are not going to

be able to see that the

um the

um trading view only only has open

interest for the binance perps what I

can do and uh there is a one nice

indicator by Spaceman uh open interest

also this one uh what basically Spaceman

did is he uh Auto matched the open

interest indicator to the

um to the Chart so now if I go to the

eat usdt on my bed

uh you can see that I still see the open

interest this is still the open address

from the from the binance purp but you

know it's matching the chart so you know

for whatever reason if you use like

coinbase chart for for your charting you

know you will always have the open

interest uh there like this so this is

this is the simplest version and once

once again you can see that uh we had a

decent increase let me just go to uh put

up child bag we have a a nice increase

in the price action in this kind of a

leg up we have also a increase in the

open interest so this is telling me that

is a large amount of buyers basically

stepping into the market uh and if

Market is really bullish we shouldn't be

trading you know under under this kind

of a level of buying once again you know

what I personally do and what you can do

is just line it up with like a simple Sr

levels uh you know this this example on

eth is actually super clean so it's not

always going to look like this but you

know this is like the plain idea you can

see that on the previous attempts when

this actually still acted as resistance

we had a increase of open interest here

we failed to continue we have a opening

interest increase here we once again

rotated lower but you know all of you

probably know that with levels of Sr the

more touches the weaker the thing is so

once we eventually essentially you know

broke the level on high amount of buying

you know that was a very high likelihood

that this this is going to get defended

by all these all these new positions you

know coming in so

like I said this is a super easy

visualization uh sometimes and you know

generally what I do and I use different

kind of scanners and the websites that

are going to show me uh these situations

where you know the open interest is

really having any sort of significant

significant changes you know like

because obviously

um you are tracking like each candle and

each opening this change for the candle

is is pretty much useless but if you

start to paying attention to these large

significant increases this is basically

where you are going to be able to find a

Best trade trading ideas

another indicator

that I like to use sometimes you can use

this open interest Delta once again by

Spaceman or leviath and I personally

like to use uh this one by

lord of the

uh you know what's what was going to be

here uh but yeah this is just a

different visualization obviously this

is like your cumulative indicator of of

the open Ender scandals this is a little

more simplified version of just a Delta

which is in this case the rate of change

of the open interest so the large the

large increases of the open interest are

going to be this huge green candles

large decreases uh are going to be these

huge red candles you can see you know

it's the same thing just a little

different visualization uh what I like

about this this one a little bit more is

that you know it's very easy to kind of

support these these large increases of

open interest compared to this that you

know goes up and down and you know this

is like a little cleaner to see uh and

there is a one last indicator that I

want to show you today which is the

arrange analysis oh this is by Leviathan

he also has a open interest

composite profile

um

to me give me a second yeah he has the

open Indus profile I'm I think Spaceman

did something similar uh but I prefer to

use this one the most this is this is

what I find really useful

um

you will you'll basically use it like a

fixed profile when I will just put uh

Mark out the start and the end you can

see it's loading

at the moment so we need to give it a

second and you can see that basically I

drew the range uh if you are going to

use this for the first time

um

it's not going to look like this so I

will just reset this to default and then

show you again

um so I'm gonna go to Range analysis

draw this from from basically any kind

of range you are interested in using I

don't know why

it's going to do sets of things

um and it's going to disappear when I

will reset the settings but

essentially I will just do it for the

third time and show you the settings

that I'm using uh you can draw your uh

kind of a own personal range I know this

kind of a range trading is very popular

when it comes to price action I don't

really use that but what is interesting

here for me is that you know if we made

this new high basically on it

uh let's say that you know and I'm mind

that the fact that you know the the

profile basically ends at this point you

know nothing coming further than it's

it's not shown here so if we had this

huge leg up and you know obviously we

are breaking above uh the previous uh Sr

level you know I want to be a buyer uh

on a pullback but uh it's it tends to be

kind of hard to hard to say where when

How deep the thing is going to pull back

and obviously you are never going to

know but the thing that is nice to use

for a little bit of Confluence is the

doing the

um using the range analysis profile with

the open interest I will just double

click it now so you can see the settings

basically you are going to choose the

open interest you should have a this you

know so then I have this set Delta and

I'm using the type 2 profile this I

believe are the only changes that I'm

using and if I if I'm going to draw the

the arrange profile like this you can

see that there is this huge block of of

kind of a virus stepping in from this

area so this is this is really the the

point you know we have like the biggest

increase of the open answers here but

this this this feels for me buying a

little too high you know obviously you

want to buy as low as possible to like

close to your invalidation which for for

this case you can see that we have this

uh

this last Spike of the open interest is

uh kind of coming here before there is

not much traded basically under that so

what I can say by looking at this is

that uh under here under this 0.5

retracement and under this kind of a

large Spike of the open interest you

know there's quite a high likelihood

that market would just do something like

this because you know this was mostly

done on covering so there is there are

not that many fresh positions that will

be kind of defending the price so uh

because of that you know I can

uh Mark out this huge this kind of a

large increase of openness here this

goes very nice in line with the SR flip

uh I can go along there my stop really

should be under this last Spike because

like I said you know under that you know

we are very likely to just continue

lower and you know you got yourself

quite a nice straight idea some other

examples uh this is a phantom

um we had a we had a decent amount of

increase of the open interest uh 10 days

ago this was something that I was

looking at uh once again you know this

was way more compressed but uh price

essentially failed to break under these

lows this is 12 hour chart and we made a

new high on the 12 hour chart as well so

you have a little kind of a price action

over and under setup you know coming

here uh when Market fails to kind of go

to the one side and then makes a new

high on the other so this essentially

should be holding and buying somewhere

in here oh it's a decent idea what

happened here okay nice so

if I will

if I will then draw the uh range profile

once again because you can see that the

biggest increase came really in the end

here which often happens because people

tend to chase the breakouts and this

this kind of latest participants are the

ones that you know will eventually get

squeezed but if I will draw the profile

on Phantom and I think this is looking

pretty good as it is right now you can

see that uh you know we obviously don't

want to buy uh somewhere in here because

your invalidation like I said like I

showed you you know Market shouldn't be

breaking this low because this is that

low on 12 hour chart that we kind of

failed under made a new high here uh so

the level of the decent level of buying

you know coming from this this area

right there and you can see also on the

on the open address this is basically

marking out your kind of whole trading

idea so buying pullback into

into this level you know with a stop on

the dead under that kind of a large

amount of buying here there are some

spikes here as well so if you want to be

like extra extra safe you can move it

all the way down but I I feel like you

know as you have this kind of decent

decent the size block uh it's it's a

decent enough stop uh you know and you

can Target something like the the high

of the Ranger or these highs or whatever

so very similar thing on Phantom uh the

last thing I have avax chart here this

is once again something I was watching

uh but nothing really do different you

know we started to break from from the

level of consolidation a couple of days

ago this is like once again 10 10 days

ago you have a decent block of the

open interest increase in this area you

know bidding someone in here you also

have this one uh block of open interest

here as well so your stop you know

realistically even if you buy here you

know should should come at least under

these lows uh ideally you know you want

to be buying a little bit lower

enteritas of the structure but you can

you can see basically this is just for

like a validating your uh trading ideas

uh

uh on on like already already uh already

existing you know all the existing

trades like for me the way that I trade

this is like the last step I'm using you

know like I said I'm using a lot of a

lot of kind of simple price action this

is a yearly view app so you can see that

you know Alex was not only breaking a

market structure it was also holding the

levy web uh inside these lows we have a

distributions uh telling me that there

are some some positions under here so

yeah this is basically just a putting

the whole trade idea together rather

than just using it uh as kind of a soul

indicator

oh like that so

the last thing that I want to talk about

and I know that this this video is

already a bit too long is if we are

going to take a look at the EXO charts

this is the latest release of the EXO

charts you need to download it from the

Discord uh I believe and the this guy on

Twitter I'm not going to try to

pronounce his name because I would

butcher it made a little six minute

video covering the things that I'm going

to show you a little more detail his

admin at EXO charts as well so uh give

it a watch if you are interested but

what exocharge basically did is they

added the open interest in inside this

kind of a footprint child profile I like

to use this on higher time frames I

don't really

look at like five minute charts anymore

or you know tick charts or whatever but

as you can see uh if I will go here to

the this kind of a cluster type we now

have the oi based uh footprint charts

and you know I can change this to like

open in this total open industry moved

created you know this is like uh

up and down basically but what the extra

charts have they have this kind of net

Longs and net shorts indicator which is

essentially showing you like new new

Longs new directional Longs and

directional shorts stepping in and I

think this is pretty sweet uh I I read

something somewhere that is not like

always that accurate so you know use it

with a pinch of salt once again you know

use it as uh kind of a your overall

strategy not using this blindly but this

long exit plus new shorts versus new

Longs plus short exits is basically

showing you in this kind of a gray gray

area or the exiting but this red and

um green uh colors are for like new

Longs and new shirts also you can change

your text to Oi based and you have like

new looks and new Shores here as well so

essentially on this footprint chart you

have really a new shorts and new Longs

stepping in and this is that this is

Quantum on 12 hour I just talked about

this over at trading view you know this

was this kind of a area where we had

this failure or to the downside and if

you are going to take a look

to the let me just check here if you are

going to take a look on the footprint

chart with the open interest you can

notice that on that on that Spike lower

oh why this is not working

uh okay I cannot make a screenshot and

draw into this but you can basically see

here inside this wigs there were new

directional shorts trying to uh you know

move the slower they failed we have

these new buyers these like large bars

stepping in uh and buying that retrace

uh was a nice nice trade opportunity

um our bedroom was something that

rallied quite a bit uh in the last few

days if you are once again going to take

a look at the

um this open Indus profile you can see

that basically we had this failure to

the downside under that kind of previous

load there was nothing too crazy in this

uh you know we had some new Shores

trying to push this lower uh but what I

found interesting was that once we

started to to test these lows you know

which was basically if I'm going to take

a look

um on the

arbit room chart on the

uh here uh you can basically see that we

failed uh to make a new lows you know we

had a scan rejection pushed to the

upside then tested back into this area

you know push from there so once again

this is one of those cases where Market

you know tried to do one thing you know

make a new laws uh rally instead and

then the people that stepped in

basically here

oh definitely the price and move this

higher but if you are going to take a

look at just the opponents by itself you

know it's nothing too insane here you

know you don't really see any kind of a

two big uh changes that is that was a

bit of shorting coming into these lows

so looking at the EXO charts here with

really a detailed kind of zoom lens view

these are once again 12 hour charts you

uh candlesticks you can see that every

time we tested the lows uh of the

previous kind of level basically in this

in this section uh this was on Sunday

last week uh you can see there was a lot

of new directional shorts opening at the

lows and they failed to fail to kind of

a push this this lower then you know

they got squeezed we came for one more

retest and you know if we go to the

upside so I really like this I really

like this new new feature on EXO charts

you know gives a lot of kind of detailed

view uh to the things that you know I'm

looking at but once again for me this is

just a last uh last piece of the kind of

execution process that I have you know

I'm using like I said price action V app

relative volume and all these things I

wouldn't trade this you know like

blindly but

um

but yeah this is very nice uh tool to

use for for Confluence the last thing I

want to show you uh is obviously this

also comes for the downside uh Solana

over this weekend this is something that

I've been looking at

um you know we are making you high you

have a lot of directional buyers coming

in here uh all these all these are new

Longs Market is going to fail

um we have this push again once again

new directional Longs this this has been

a nice short uh

short opportunity either from here on

the retest kind of in this area or after

we you know made the Scandal and this is

this is a on an hourly time frame so

obviously you're kind of a horizon on

how long are you going to be holding the

trade will highly differ so this is more

of like a day trading scenario uh let me

you know I can even show you this on

like a 15 minute chart you know this is

like a kind of a sculpt uh Slash day

trade rather than you know something

that you want to be holding for for that

long because on a hard time frame

there's there was nothing uh that

significant really but you can see you

know on a 15 minute chart it's it's just

the same thing uh this is kind of the

thing that you need to understand you

know the time frames and how long you

want to be holding trades and you know

stuff around that basically I just

wanted to show you this example that

obviously there is a uh the same it

works for the short side the same way

okay so this is it for the video I know

it's been a little longer than usual I

hope it wasn't all that well ring but

yeah this this is kind of a how I use uh

the open interest different indicators

some of them you know are on trading

view I do believe that you know

especially if you are new to this using

the open interest on trading view with

some of the indicators that I showed you

you know that range analysis profile is

really nice because it can kind of

validate your trading ideas quite a bit

so so that one is great uh the the one

Vice basement that auto plots the open

interest is also very nice uh so yeah

this this is just a like I said if you

are new go with this if you are a little

more kind of advanced and experienced

you know you can play around with coin

lies uh looking at how the cvds are you

know acting around the moves as well how

the funding is looking how the

liquidations are looking and so and so

forth and if you are the extra charge

subscriber I highly recommend you to

actually play with this this one because

this is really nice this is something

that I will be definitely using uh going

forward to to kind of once again you

know validate the ideas and stuff like

that because at the end of the day I

believe and the way that I'm using this

you know uh compared to just a simple

price action these are the situations

essentially that will allow you to kind

of increase size you know having that

that order flow Confluence uh definitely

at least for me uh is something where I

you know start to feel more confident

with taking trades obviously outcome of

each trade is uh more so random but yeah

when you have situations when like

everything is going to line up like this

it will give you that confidence maybe

increasing size uh going you know a

little a little harder and stuff like

that okay so thank you for your

attention and I will see you in the next

video