In the futures market, open position refers to the sum of positions bought (or sold) before open position, and generally refers to the sum of contracts with inconsistent buying and selling directions after transaction. Futures positions are similar to the circulation of stocks, except that futures positions will change at any time, and the ups and downs of positions also provide technical analysts with clues to judge the price trend. Only by looking at the change of position can we understand the power of confrontation between long and short sides. It is difficult to analyze the market, and it is generally necessary to combine the changes in futures prices.
When analyzing positions, we should pay attention to the following matters:
1. It is bullish to add positions in the upward trend.
2. It is bearish to lighten the position in the upward trend.
3. It is bearish to add positions in the downward trend.
4. It is bullish to lighten the position in the downward trend.