Just sharing something from when I first started trading futures: I was really into the long/short ratio. Whenever I saw that the percentage of long positions was high, I’d go long too—and more than once, a single wick swept me out.
Later, I realized that the long/short ratio tells you which side everyone is on, but the market often likes to make moves in the direction with fewer people.
Today, the long/short ratio across all accounts is 0.88 for $IDOL , with a few more shorts. I’m just treating it as a reference.
Later, I realized that the long/short ratio tells you which side everyone is on, but the market often likes to make moves in the direction with fewer people.
Today, the long/short ratio across all accounts is 0.88 for $IDOL , with a few more shorts. I’m just treating it as a reference.