Open Interest Clusters

Open interest clusters represent concentrations of leveraged positions at specific price levels. When the market price approaches these clusters, it often triggers mass liquidations, leading to high volatility.

Analysts track these clusters to identify potential support or resistance levels where large forced movements may occur. They are a vital tool in behavioral game theory as they reveal where other market participants are vulnerable.

Understanding these concentrations helps traders anticipate where the market might experience rapid liquidation-driven price action.