How do you use the long/short ratio? Take $ETH as an example: the large traders’ long/short position ratio is 1.63 (62% long / 38% short) (1.63 one hour ago).
I usually look at it in three steps:
① Check for extremes: It’s already skewed toward an extreme, and the side everyone is piling into is more vulnerable to a reversal.
② Check the change: It’s about the same as one hour ago.
③ Check for divergence: The price is up 1.37% over 24h, and there’s currently no obvious divergence.
When most people are on the same side, moves in the opposite direction often hit harder.
Make your own decisions about when to enter and exit—don’t just follow the crowd.
I usually look at it in three steps:
① Check for extremes: It’s already skewed toward an extreme, and the side everyone is piling into is more vulnerable to a reversal.
② Check the change: It’s about the same as one hour ago.
③ Check for divergence: The price is up 1.37% over 24h, and there’s currently no obvious divergence.
When most people are on the same side, moves in the opposite direction often hit harder.
Make your own decisions about when to enter and exit—don’t just follow the crowd.