$ETH ｜Top traders' long/short position ratio 1.5｜Long 60% / Short 40%
How should you interpret top traders' long/short position ratio? The typical ratio can vary significantly from one coin to another, even when the figures are the same. It's more reliable to compare it with that coin's own historical levels.
The long/short ratio is often used as a crowding gauge: when one side gets too crowded, a price move against the majority can trigger a cascade of stop-losses.
Sizing your orders based on the distance to your stop-loss is much more reliable than relying on gut feeling.
#ETH
How should you interpret top traders' long/short position ratio? The typical ratio can vary significantly from one coin to another, even when the figures are the same. It's more reliable to compare it with that coin's own historical levels.
The long/short ratio is often used as a crowding gauge: when one side gets too crowded, a price move against the majority can trigger a cascade of stop-losses.
Sizing your orders based on the distance to your stop-loss is much more reliable than relying on gut feeling.
#ETH