$ETH Global account long/short ratio: 3.18 (long 76.1% / short 24%).
I used to think that when the long/short ratio was above 1, it meant there were more long positions than short positions across the market. It took me a while to understand: every long position has a short position on the other side, so the total number of longs and shorts across the market is always equal. An account long/short ratio above 1 simply means more accounts are going long, while the short positions are held by fewer accounts.
I treat the long/short ratio as a supplementary reference and mainly focus on price structure and trading volume.
Leave more room when positioning in futures, so one sudden price swing doesn’t stop you out.
#ETH
I used to think that when the long/short ratio was above 1, it meant there were more long positions than short positions across the market. It took me a while to understand: every long position has a short position on the other side, so the total number of longs and shorts across the market is always equal. An account long/short ratio above 1 simply means more accounts are going long, while the short positions are held by fewer accounts.
I treat the long/short ratio as a supplementary reference and mainly focus on price structure and trading volume.
Leave more room when positioning in futures, so one sudden price swing doesn’t stop you out.
#ETH