Market Notes | $Q | Top traders’ long/short position ratio: 1.14 | Long 53.4% / Short 46.7%
First, a definition: The long/short ratio of top traders is often used as a gauge of where big money is headed. But top traders can be wrong too, and they may simply be using futures to hedge spot positions.
How to read it: Some people also use the account long/short ratio as a contrarian indicator, but that’s just one way of using it—and it often fails.
Knowing how to read indicators isn’t hard. The hard part is sticking to your plan when the market is at its most extreme.
#Q
First, a definition: The long/short ratio of top traders is often used as a gauge of where big money is headed. But top traders can be wrong too, and they may simply be using futures to hedge spot positions.
How to read it: Some people also use the account long/short ratio as a contrarian indicator, but that’s just one way of using it—and it often fails.
Knowing how to read indicators isn’t hard. The hard part is sticking to your plan when the market is at its most extreme.
#Q
