How do you use the long/short ratio? Take $ETH as an example: the top traders’ long/short ratio is 1.72 (63.2% long / 36.8% short) (1.72 an hour ago).
I usually look at it in three steps:
① Check for extremes: It’s already fairly extreme, and the side that’s heavily one-sided is often the one that gets caught out by a sharp wick.
② Check for changes: It’s basically unchanged from an hour ago.
③ Check for divergence: The price is down 0.033% over 24 hours, but there are still more traders going long. Watch out for a long squeeze.
Sentiment can amplify volatility, but it can’t determine the trend.
#ETH
This is just a market update. Please make your own trading decisions.
I usually look at it in three steps:
① Check for extremes: It’s already fairly extreme, and the side that’s heavily one-sided is often the one that gets caught out by a sharp wick.
② Check for changes: It’s basically unchanged from an hour ago.
③ Check for divergence: The price is down 0.033% over 24 hours, but there are still more traders going long. Watch out for a long squeeze.
Sentiment can amplify volatility, but it can’t determine the trend.
#ETH
This is just a market update. Please make your own trading decisions.