How do you use the long/short ratio? Let’s use $BTC as an example: the global account long/short ratio is 1.51 (60.1% long / 39.9% short), compared with 1.52 an hour ago.
I usually look at it in three steps:
① Check for extremes: The ratio is fairly extreme right now, and the heavily favored side is more vulnerable to getting caught in a reversal.
② Check the change: Short positions have increased compared with an hour ago.
③ Check for divergence: The price is up 0.33% over 24 hours, with no clear divergence for now.
This data is for reference, not a trading signal.
In highly volatile markets, risk management comes first.
I usually look at it in three steps:
① Check for extremes: The ratio is fairly extreme right now, and the heavily favored side is more vulnerable to getting caught in a reversal.
② Check the change: Short positions have increased compared with an hour ago.
③ Check for divergence: The price is up 0.33% over 24 hours, with no clear divergence for now.
This data is for reference, not a trading signal.
In highly volatile markets, risk management comes first.