💡 TradFi Explained | How to read the long/short ratio
Long/short ratio = number of long positions ÷ number of short positions
Guidelines:
> 4.0 Extremely bullish, often corresponds to a temporary top
2.5–4.0 Bullish; be cautious when chasing longs
0.8–1.2 Balanced; good two-way liquidity
< 0.5 Bearish
Best ways to combine:
High long/short ratio + high funding rate = highest risk signal 🔴
Balanced long/short ratio + funding rate close to 0 = best entry environment 🟢
⚠️ This content is for learning reference only and does not constitute investment advice.
Follow @Trump-BTC (币友-Bi you) for daily TradFi analysis.
Long/short ratio = number of long positions ÷ number of short positions
Guidelines:
> 4.0 Extremely bullish, often corresponds to a temporary top
2.5–4.0 Bullish; be cautious when chasing longs
0.8–1.2 Balanced; good two-way liquidity
< 0.5 Bearish
Best ways to combine:
High long/short ratio + high funding rate = highest risk signal 🔴
Balanced long/short ratio + funding rate close to 0 = best entry environment 🟢
⚠️ This content is for learning reference only and does not constitute investment advice.
Follow @Trump-BTC (币友-Bi you) for daily TradFi analysis.