At any time, there are both buyers (holding long positions) and sellers (short) on the market. The difference between them is called open interest.
It can objectively assess the real mood of market participants, track changes and see the overall average position of all players. Well work out divergences between OI and prices on the upper and lower fractals. Marketmakers use OI to their advantage, analyzing changes in positions in real time.
Information on the number of open positions on the exchange is displayed in a special database called OPEN BOOK. Access to the PR is usually limited to the price of retail traders (I was invoiced $ 20,000 / month in a brokerage firm ( + NYSE)).
Thanks to TW, it is possible to know Open Interest using Bitfinex data.
We offer indicators
Open Interest Bifinex USD TOP - changes in USD pairs
Open Interest BifinexBTC TOP - changes in pairs BTC
Can be used on any timeframe.
In the settings, you can specify any period of bars for summing the OI.
You can display a separate currency by disabling unnecessary ones.
The indicator does not give hard signals to buy / sell, but shows a REAL picture. Changing the timeframe and period allows you to deeply understand the alignment of forces. Complete with other analysis options increases the likelihood of creating a profitable trading system.
Separately on the use of the indicator with divergence will be a separate article with examples.
On request, access is free for a week.
On request, there are options for a set of currencies (only from the listing of Bitfinex).
Examples of using