$ETH Network-wide account long/short ratio: 2.94 (long 74.6% / short 25.4%), unchanged from 1 hour ago at 2.94.
I used to think that a long/short ratio above 1 meant there were more long positions than short positions across the whole market. It took me a while to understand: the total number of long and short positions across the whole market is always equal. The account long/short ratio only shows whether there are more accounts net long or net short, regardless of position size.
The long/short ratio alone can't tell you whether prices will rise or fall. It's generally best to look at it alongside open interest, funding rates, and price.
Calculating position size based on where you place your stop-loss is much more reliable than choosing a size by feel.
#ETH
I used to think that a long/short ratio above 1 meant there were more long positions than short positions across the whole market. It took me a while to understand: the total number of long and short positions across the whole market is always equal. The account long/short ratio only shows whether there are more accounts net long or net short, regardless of position size.
The long/short ratio alone can't tell you whether prices will rise or fall. It's generally best to look at it alongside open interest, funding rates, and price.
Calculating position size based on where you place your stop-loss is much more reliable than choosing a size by feel.
#ETH