How do you use the long/short ratio? Let’s take $BTC as an example: the overall account long/short ratio is 1.52 (60.3% long / 39.8% short) (1.51 one hour ago).
I usually look at it in three steps:
① Check for extremes: The current reading is relatively extreme, and the heavily one-sided position is more susceptible to a shakeout in the opposite direction;
② Check the change: Long positions have increased compared with one hour ago;
③ Check for divergence: The price is up 0.19% over 24 hours, and there is currently no obvious divergence.
Sentiment indicators are useful as a reference, but shouldn’t be used on their own to make decisions.
#BTC
Crypto assets can move sharply, so use leverage with restraint.
I usually look at it in three steps:
① Check for extremes: The current reading is relatively extreme, and the heavily one-sided position is more susceptible to a shakeout in the opposite direction;
② Check the change: Long positions have increased compared with one hour ago;
③ Check for divergence: The price is up 0.19% over 24 hours, and there is currently no obvious divergence.
Sentiment indicators are useful as a reference, but shouldn’t be used on their own to make decisions.
#BTC
Crypto assets can move sharply, so use leverage with restraint.