One more thing: when I first started trading futures, my favorite thing was to look at the long-short ratio. Whenever I saw a high proportion of longs, I would follow and open long positions. As a result, more than once I got stopped out by a wick.
Later I understood: the long-short ratio tells you which side everyone is on, but the market often likes to move in the opposite direction.
Today $NEAR large-account long-short ratio is 2.58, with longs making up the larger share, so I’ll take it as a reminder.
Later I understood: the long-short ratio tells you which side everyone is on, but the market often likes to move in the opposite direction.
Today $NEAR large-account long-short ratio is 2.58, with longs making up the larger share, so I’ll take it as a reminder.