# Open Interest Inflows & Outflows

Open Interest Inflows & Outflows measures whether changes in open interest come from new positions arriving or old ones closing, plotting an OI flow sentiment oscillator beside an Elder-Ray-based price sentiment line. A rolling correlation against user-selected data validates trends and flags divergences for derivatives traders.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Feb 13, 2024.
- Access: free.
- Concepts: [Open Interest](https://www.luxalgo.com/library/concept/open-interest/) (primary)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn4aef0060vhsgk8w5hff4
- Page: https://www.luxalgo.com/library/indicator/open-interest-inflows-outflows/

**Open Interest Inflows & Outflows** separates a change in [futures open interest](https://www.luxalgo.com/library/concept/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

### What are Bull Power and Bear Power?

They are the Elder-Ray components beneath Price Sentiment, measuring how far a bar's high and low stretch from a 13-period EMA baseline. Together they show whether buyers or sellers are winning ground relative to that consensus value.

### When would I use this instead of the Open Interest Chart?

Use the [Open Interest Chart](https://www.luxalgo.com/library/indicator/open-interest-chart/) to sweep percentage changes across up to six markets at once. Reach for this tool when a single instrument deserves the full breakdown of flows, sentiment, and correlation.

### Is Open Interest Inflows & Outflows free?

Yes, free through the LuxAlgo Library. It also runs in Quant, our coding agent, launchable straight from this page. You can also copy the source code from this page and run it anywhere Pine Script® runs.

## Related indicators

- [Open Interest Chart](https://www.luxalgo.com/library/indicator/open-interest-chart/) (Open Interest): markdown at https://www.luxalgo.com/library/indicator/open-interest-chart.md
- [Liquidation Estimates (Real-Time)](https://www.luxalgo.com/library/indicator/liquidation-estimates-real-time/) (Open Interest): markdown at https://www.luxalgo.com/library/indicator/liquidation-estimates-real-time.md
- [Volume Bubbles & Liquidity Heatmap](https://www.luxalgo.com/library/indicator/volume-bubbles-liquidity-heatmap/) (Liquidation Clusters): markdown at https://www.luxalgo.com/library/indicator/volume-bubbles-liquidity-heatmap.md
- [Crypto Liquidation Heatmap](https://www.luxalgo.com/library/indicator/crypto-liquidation-heatmap/) (Liquidation Clusters): markdown at https://www.luxalgo.com/library/indicator/crypto-liquidation-heatmap.md
- [Liquidation Levels](https://www.luxalgo.com/library/indicator/liquidation-levels/) (Liquidation Clusters): markdown at https://www.luxalgo.com/library/indicator/liquidation-levels.md
- [Bitcoin Power Law Clock](https://www.luxalgo.com/library/indicator/bitcoin-power-law-clock/) (Crypto Cycle Models): markdown at https://www.luxalgo.com/library/indicator/bitcoin-power-law-clock.md
- [Bitcoin Power Law](https://www.luxalgo.com/library/indicator/bitcoin-power-law/) (Crypto Cycle Models): markdown at https://www.luxalgo.com/library/indicator/bitcoin-power-law.md
- [Liquidations Meter](https://www.luxalgo.com/library/indicator/liquidations-meter/) (Liquidation Clusters): markdown at https://www.luxalgo.com/library/indicator/liquidations-meter.md

---

Source: https://www.luxalgo.com/library/indicator/open-interest-inflows-outflows/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/