A real example: $BR . The long/short ratio for large traders’ positions is 1.49 (59.9% long / 40.1% short), compared with 1.63 an hour ago.
Think of the long/short ratio as a vote, except votes are weighted by position size.
For a quick explainer: across the entire market, the total size of long positions always equals the total size of short positions. So if top accounts hold more long positions overall, the rest of the accounts must be net short.
Indicators can fail, so don’t skip risk management: decide in advance what you’ll do if you’re wrong. That matters more than guessing right.
Think of the long/short ratio as a vote, except votes are weighted by position size.
For a quick explainer: across the entire market, the total size of long positions always equals the total size of short positions. So if top accounts hold more long positions overall, the rest of the accounts must be net short.
Indicators can fail, so don’t skip risk management: decide in advance what you’ll do if you’re wrong. That matters more than guessing right.