Description

The indicator takes as input 2 variables Volume delta and Open interest delta, which are further compared according to the following logic:

	Open interest delta > 0	Open interest delta < 0
Volume delta > 0	Net taker long delta = Open interest delta Net taker short delta = 0	Net taker long delta = 0 Net taker short delta = Open interest delta
Volume delta < 0	Net taker long delta = 0 Net taker short delta = Open interest delta	Net taker long delta = Open interest delta Net taker short delta = 0

As a result, the indicator gets 2 new variables:

Net taker long delta - net long interest opened by market orders,
Net taker short delta - net short interest opened by market orders.

From the obtained variables Net taker long/short delta variables are calculated:

Net maker long delta - net long interest opened by limit orders,
Net maker short delta - net short interest opened by limit orders.

Fair:

Net maker long delta = Net taker short delta;
Net maker short delta = Net taker long delta.

Thus:

Open interest = Net taker long delta + Net taker short delta = Net maker long delta + Net taker maker delta

<aside> 💡 Each Buy/Sell trade opened by a market/limit order always has a trade in the opposite direction of the opposite order type.

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<aside> 💡 Important Note: Since the indicator is calculated on the basis of bar-aggregated data, its indicators on different timeframes may differ. The recommendation is to use the minimum available timeframe. In the future, we will move the model calculation on the backend to the tick frame.

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The Net open interest indicator has one peculiarity - sometimes its values can be negative. This is due to the peculiarities of its calculation. The matrix model Net open interest delta is calculated on the server (backend) side of the platform. The candlestick chart is calculated on the client (frontend) side by integrating (or cumulative sum) the Net open interest delta for the entire historical interval loaded by the user. Because of this, the absolute values of the indicator may change when loading additional historical data. Also, Net open interest values can go into the negative zone if negative values prevail in Net open interest delta. However, the relative changes in the model do not change.

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