How should the long-short ratio be used? Using $ETH as an example: the overall account long-short ratio is 2.70 (long 73% / short 27.1%) (1 hour ago: 2.67).
I usually look at it in three steps:
① Check extremes: it is already somewhat extreme now, and the heavily one-sided side is more likely to be hunted by wicks;
② Check changes: compared with 1 hour ago, longs have increased;
③ Check divergence: price is up 0.95% over 24h, and there is currently no obvious divergence.
A series of readings pointing in the same direction over several consecutive periods is more worth paying attention to than a single fluctuation.
I usually look at it in three steps:
① Check extremes: it is already somewhat extreme now, and the heavily one-sided side is more likely to be hunted by wicks;
② Check changes: compared with 1 hour ago, longs have increased;
③ Check divergence: price is up 0.95% over 24h, and there is currently no obvious divergence.
A series of readings pointing in the same direction over several consecutive periods is more worth paying attention to than a single fluctuation.