How to judge whether the market will continue through the K-line slope and open interest

We can see that in the first stage, the market rose slowly at an angle of 45 degrees, and the open interest has been increasing cumulatively. During the small correction, the open interest almost did not decrease, and the open interest continued to increase during the subsequent rise. This is also a sign of strong funding. The main funds are participating, so there is a high probability that it will continue at this stage.

After the market rose steadily, there was a rapid correction, and the open interest dropped significantly. At the same time, there were also some liquidation of long chips at the bottom, which was to wash out the following chips of retail investors.

After washing the chips, the market began to rise at an angle close to 90 degrees, and positions increased again, but we refer to the previous trend. The market rose nearly 50% in the first half, with open interest increasing by 300%. But in the final increase of 100%, the position only increased by about 35%. It shows that after the price surged during this period, the subsequent funds did not follow as strongly as before. In this case, the market continuity was poor. When the correction began to fall, the positions plummeted, and the long positions bought at the bottom were at this position. They began to flee one after another.

A brief summary: A 45-degree angle rises and positions increase steadily. This is a healthy sign for bulls, and the market usually continues its strong rise. If the position rises at a 90-degree angle and the increase in positions is not obvious, then the subsequent sustainability will be poor.

#FLM