A quick note: $NEAR — the long/short ratio of large traders' positions is 2.7 (73% long / 27% short).
People often ask what the long/short ratio of large traders' positions means. This is how I understand it.
Compared with the figure at any given moment, the direction in which the ratio is changing is usually more informative: whether large traders are adding to or reducing their long positions can tell you more than whether the number itself is high or low.
Some people use the account long/short ratio as a contrarian indicator, but that's just an empirical approach, and it doesn't always work.
All indicators merely summarize past price movements; the market can turn in the opposite direction at any time.
People often ask what the long/short ratio of large traders' positions means. This is how I understand it.
Compared with the figure at any given moment, the direction in which the ratio is changing is usually more informative: whether large traders are adding to or reducing their long positions can tell you more than whether the number itself is high or low.
Some people use the account long/short ratio as a contrarian indicator, but that's just an empirical approach, and it doesn't always work.
All indicators merely summarize past price movements; the market can turn in the opposite direction at any time.