$KAIA Overall account long/short ratio: 1.18 (long 54.2% / short 45.8%).
I used to think that a long-biased ratio meant there were more long positions than short positions across the market. Then I realized that every long position is matched by a short position, so the market is always balanced overall. An account long/short ratio above 1 only means there are more accounts going long, while short positions are concentrated among fewer accounts.
Don’t chase a trade at the most volatile moment. Wait for the price to settle before taking another look.
Just my personal opinion—don’t take it too seriously.
I used to think that a long-biased ratio meant there were more long positions than short positions across the market. Then I realized that every long position is matched by a short position, so the market is always balanced overall. An account long/short ratio above 1 only means there are more accounts going long, while short positions are concentrated among fewer accounts.
Don’t chase a trade at the most volatile moment. Wait for the price to settle before taking another look.
Just my personal opinion—don’t take it too seriously.