Open Interest Inflows & Outflows
By LuxAlgoFeb 13, 2024
Open Interest Inflows & Outflows separates a change in futures open interest into what caused it: fresh contracts being opened, or existing ones being closed. An OI Flow Sentiment oscillator plots that balance; a Price Sentiment companion built on the Elder-Ray bull and bear power model (bar extremes measured against a 13-period EMA) shows which side controls price; and a rolling correlation ties open interest changes to the source data you select.
How to Trade the Open Interest Inflows & Outflows?
- OI Flow Sentiment above zero: inflows dominate: new positioning is entering the market, with distance from zero showing how decisively.
- OI Flow Sentiment below zero: outflows dominate as traders unwind exposure and interest drains away.
- Price Sentiment readings: positive values mean bull power outweighs bear power around the EMA baseline; negative values hand control to sellers.
- Correlation as confirmation: volume and open interest rising together corroborates the prevailing trend, while disagreement among price, volume, and open interest often precedes a turn.
Reading the two oscillators side by side is the point. A move backed by dominant inflows and matching price sentiment is being funded; a move without them deserves suspicion.
Open Interest Inflows & Outflows Settings
- OI Sentiment Correlation: toggles the correlation display against your chosen source.
- Money Flow Estimates: shows money flow estimates derived from recent data.
- OI Flow Sentiment and Price Sentiment: visibility and color options for each oscillator.
- Correlation Colors: styles the correlation area.
- Smoothing: steadies both sentiment series for cleaner reads.
Frequently Asked Questions
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