A note: The overall account long/short ratio for $BTC is 1.88 (65.2% long / 34.8% short).
People often ask how to interpret the overall account long/short ratio. Here’s how I see it.
The total number of long positions and short positions in the entire market is always equal. A bullish overall account long/short ratio only means that long positions are spread across more accounts, while short positions are concentrated in a smaller number of accounts.
Rather than looking at the reading at any one moment, it’s usually more useful to watch which way the ratio is moving and how quickly.
Learning to read indicators isn’t hard. The hard part is sticking to your rules when the market is most volatile.
Make your own decisions about when to enter and exit. Don’t follow the crowd blindly.
People often ask how to interpret the overall account long/short ratio. Here’s how I see it.
The total number of long positions and short positions in the entire market is always equal. A bullish overall account long/short ratio only means that long positions are spread across more accounts, while short positions are concentrated in a smaller number of accounts.
Rather than looking at the reading at any one moment, it’s usually more useful to watch which way the ratio is moving and how quickly.
Learning to read indicators isn’t hard. The hard part is sticking to your rules when the market is most volatile.
Make your own decisions about when to enter and exit. Don’t follow the crowd blindly.