Price vs OI 24h Relative Change

📘 How to Use – Price vs Open Interest (24h Relative Change)

This indicator compares price movement and open interest (OI) change over the last 24 hours, allowing you to better understand market positioning and trader behavior.

It does not generate signals by itself. It is designed as a context and confirmation tool.

🔹 What the Indicator Shows

Price Δ (green area)
The percentage change in price compared to 24 hours ago.

Open Interest Δ (purple area)
The percentage change in open interest compared to 24 hours ago
(based on Binance BTCUSDT perpetual futures).

Zero line
The 24h baseline. Values above zero indicate an increase, below zero a decrease.

🔹 How to Interpret the Relationship
📈 Price ↑ & OI ↑

➡️ New positions are being opened in the direction of the move
This usually confirms trend continuation.

📈 Price ↑ & OI ↓

➡️ Short positions are being closed
This often indicates a short squeeze or short covering rally, which can be less sustainable.

📉 Price ↓ & OI ↑

➡️ New short positions are entering the market
This suggests bearish conviction and possible downside continuation.

📉 Price ↓ & OI ↓

➡️ Positions are being closed on both sides
Often seen during deleveraging, consolidation, or range conditions.

🔹 How to Use It in Practice

Use it as a confirmation tool alongside price action

Compare price structure with OI behavior

Identify whether moves are driven by new positioning or position closures

Works on all timeframes (intraday to swing)

⚠️ Important Notes

This indicator is non-repainting

It uses relative changes, not absolute values

It is best used to understand market structure, not as a standalone trading system