Just saw: $JCT all-account long/short ratio across the market is 1.02 (50.4% long / 49.6% short), compared with 0.93 an hour ago.
People often ask what the all-account long/short ratio means. Here’s how I understand it.
The total number of long and short positions in the market is always the same. A bullish all-account long/short ratio simply means that long positions are spread across more accounts, while short positions are held by fewer accounts.
When the long/short ratio and funding rate both lean in the same direction, signs of concentrated positions become more apparent. When they conflict, don’t jump to conclusions.
Understanding indicators is easy; the hard part is sticking to the rules when the market gets really exciting.
People often ask what the all-account long/short ratio means. Here’s how I understand it.
The total number of long and short positions in the market is always the same. A bullish all-account long/short ratio simply means that long positions are spread across more accounts, while short positions are held by fewer accounts.
When the long/short ratio and funding rate both lean in the same direction, signs of concentrated positions become more apparent. When they conflict, don’t jump to conclusions.
Understanding indicators is easy; the hard part is sticking to the rules when the market gets really exciting.