$Q All-platform account long/short ratio: 1.56 (60.9% long / 39.1% short), compared with 1.42 one hour ago.
At first, I thought a long/short ratio above 1 meant there were more long positions than short positions across the whole market. Then I realized: every long position has a short position on the other side, so the market always has an equal number of longs and shorts. A bullish account long/short ratio only means more accounts are going long, while short positions are concentrated among fewer accounts.
Understanding how to read indicators isn’t hard. The hard part is sticking to your plan when emotions are running high.
#Q
At first, I thought a long/short ratio above 1 meant there were more long positions than short positions across the whole market. Then I realized: every long position has a short position on the other side, so the market always has an equal number of longs and shorts. A bullish account long/short ratio only means more accounts are going long, while short positions are concentrated among fewer accounts.
Understanding how to read indicators isn’t hard. The hard part is sticking to your plan when emotions are running high.
#Q
