Just jotting this down: a friend asked me how to use the long/short ratio, so I used $SOL as an example:
The overall account long/short ratio is 2.52, meaning 71.6% are long and 28.4% are short.
A ratio above 1 means more traders are going long, while a ratio below 1 means more are going short. But most importantly, the more lopsided the numbers are, the more wary you should be of a move in the opposite direction.
The overall account long/short ratio is 2.52, meaning 71.6% are long and 28.4% are short.
A ratio above 1 means more traders are going long, while a ratio below 1 means more are going short. But most importantly, the more lopsided the numbers are, the more wary you should be of a move in the opposite direction.