How do you use the long-short ratio? Let’s use $SIREN as an example: the overall account long-short ratio is 1.93 (65.9% long / 34.2% short) (2.34 one hour ago).
I usually look at it in three steps:
① Check for extremes: It’s already quite extreme, and the side that’s heavily skewed could easily get caught in a wick hunt;
② Check the change: There are more short positions than an hour ago;
③ Check for divergence: The price is up 52.33% over 24h, with no clear divergence for now.
Trading based on sentiment makes it easy to chase highs and sell lows.
#SIREN
I usually look at it in three steps:
① Check for extremes: It’s already quite extreme, and the side that’s heavily skewed could easily get caught in a wick hunt;
② Check the change: There are more short positions than an hour ago;
③ Check for divergence: The price is up 52.33% over 24h, with no clear divergence for now.
Trading based on sentiment makes it easy to chase highs and sell lows.
#SIREN