Over the last four months, Open Interest has given us a correction alert and the possibility of finding long trades with efficient leverage. In the three main tops since May, leverages averaged 15.7%, indicating tops and market wear with high leverage.

Corrections and long liquidations tend to start when Open Interest exceeds +1sd!

" Impulse zones” are necessary so that the investor can capitalize on maximum profits with long positions and minimize losses. See Open Interest oscillate between -10% and -8%. On September 24th, there was a drop of -8%.

Compared to past movements, the “impulse zones” happens when the STH SOPR begins the recovery process to see the average profit of these cohorts increase.

Written by Percival