To put it simply, a friend asked me how to use the long/short ratio. Here’s an example using $LUMIA :
The overall long/short account ratio is 0.56, meaning 36.1% are long and 63.9% are short.
A ratio above 1 means a higher proportion of traders are long; below 1 means a higher proportion are short. But most importantly, the more extreme the ratio, the more cautious you should be about a move in the opposite direction.
The overall long/short account ratio is 0.56, meaning 36.1% are long and 63.9% are short.
A ratio above 1 means a higher proportion of traders are long; below 1 means a higher proportion are short. But most importantly, the more extreme the ratio, the more cautious you should be about a move in the opposite direction.