$TRUTH The all-platform account long/short ratio is 0.51 (34% long / 66% short).
Let’s use this figure to talk about the all-platform account long/short ratio.
In the account long/short ratio, an account with a very small position counts just as much as one with a very large position, so it’s more indicative of retail traders’ sentiment.
Some people also treat the account long/short ratio as a contrarian indicator, but that’s just one way of reading it, and it often doesn’t work.
Extreme readings usually mean greater volatility. In those situations, it’s better to reduce your position rather than place a heavy bet.
#TRUTH
I may not be right, so don’t take this as advice.
Let’s use this figure to talk about the all-platform account long/short ratio.
In the account long/short ratio, an account with a very small position counts just as much as one with a very large position, so it’s more indicative of retail traders’ sentiment.
Some people also treat the account long/short ratio as a contrarian indicator, but that’s just one way of reading it, and it often doesn’t work.
Extreme readings usually mean greater volatility. In those situations, it’s better to reduce your position rather than place a heavy bet.
#TRUTH
I may not be right, so don’t take this as advice.