$ETH ｜Platform-wide account long/short ratio: 2.9｜Long 74.4% / Short 25.6%
Before looking at capital flows, first understand the platform-wide account long/short ratio.
The platform-wide account long/short ratio is the number of accounts with a net long position divided by the number of accounts with a net short position. It counts accounts, regardless of how large their positions are.
The long/short ratio is often treated as a crowding gauge: when one side is heavily concentrated, a price move against that side can trigger more liquidations.
Understanding how to read an indicator is easy; the hard part is still following your rules when market conditions become extreme.
This is just a market note. Please make your own trading decisions.
Before looking at capital flows, first understand the platform-wide account long/short ratio.
The platform-wide account long/short ratio is the number of accounts with a net long position divided by the number of accounts with a net short position. It counts accounts, regardless of how large their positions are.
The long/short ratio is often treated as a crowding gauge: when one side is heavily concentrated, a price move against that side can trigger more liquidations.
Understanding how to read an indicator is easy; the hard part is still following your rules when market conditions become extreme.
This is just a market note. Please make your own trading decisions.