Anchored Open Interest (OI)

Definition

Anchored Open Interest (OI) is a specialized variation of the traditional Open Interest indicator that resets its calculation at predefined anchor points, such as the start of a day, 4-hour period, or 1-hour period. Open Interest measures the total number of outstanding derivative contracts (e.g., futures or options) that have not been settled.

Key Features:

• Reset Points: The cumulative calculation starts fresh at each anchor point (e.g., daily, 4-hour, or 1-hour intervals).

• Comparative Analysis: Facilitates clearer comparisons of position buildup and reduction across different timeframes.

• Market Sentiment Insights: Highlights periods of significant position changes, providing deeper insight into directional biases and potential reversals.

This variation helps traders analyze intraday changes in market positioning, track how open interest evolves during key periods, and identify patterns of accumulation or distribution.