Let your friends know: someone asked me how to use the long/short ratio, so here’s an example using $MAGMA :
The platform-wide account long/short ratio is 0.93, meaning 48.1% are long and 51.9% are short.
A ratio above 1 means more traders are going long; below 1 means more are going short. But the most important thing is this: the more one-sided the numbers are, the more cautious you should be about a move in the opposite direction.
Stay rational, and don’t get carried away.
The platform-wide account long/short ratio is 0.93, meaning 48.1% are long and 51.9% are short.
A ratio above 1 means more traders are going long; below 1 means more are going short. But the most important thing is this: the more one-sided the numbers are, the more cautious you should be about a move in the opposite direction.
Stay rational, and don’t get carried away.