A few personal thoughts: A friend asked me how to use the long/short ratio, so I used $ETH as an example:
The overall long/short ratio across all accounts is 2.85, meaning 74% are long and 26% are short.
A ratio above 1 means there are more longs, while a ratio below 1 means there are more shorts. But most importantly, the more one-sided the ratio, the more wary you should be of volatility in the opposite direction.
The overall long/short ratio across all accounts is 2.85, meaning 74% are long and 26% are short.
A ratio above 1 means there are more longs, while a ratio below 1 means there are more shorts. But most importantly, the more one-sided the ratio, the more wary you should be of volatility in the opposite direction.