A quick note: $US the overall account long/short ratio is 0.94 (long 48.5% / short 51.5%), up from 1.2 one hour ago.
People often ask how to interpret the overall account long/short ratio, so here’s my understanding.
A long/short ratio above 1 means more accounts are holding long positions; below 1 means the opposite. The long and short percentages are the proportions of long and short accounts respectively.
Some also use the account long/short ratio as a contrarian indicator, but that is only an empirical interpretation, and it is not uncommon for it to fail.
Indicators can be inaccurate, but risk control should not be absent: deciding in advance how to respond when you are wrong is more important than guessing right or wrong.
#US
Just a note, not investment advice.
People often ask how to interpret the overall account long/short ratio, so here’s my understanding.
A long/short ratio above 1 means more accounts are holding long positions; below 1 means the opposite. The long and short percentages are the proportions of long and short accounts respectively.
Some also use the account long/short ratio as a contrarian indicator, but that is only an empirical interpretation, and it is not uncommon for it to fail.
Indicators can be inaccurate, but risk control should not be absent: deciding in advance how to respond when you are wrong is more important than guessing right or wrong.
#US
Just a note, not investment advice.