A quick note: $ETH has a large-trader long/short position ratio of 1.5 (60% long / 40% short).
People often ask what the large-trader long/short position ratio means. This is how I understand it.
Compared with the reading at any given moment, the direction in which the ratio is moving is often more useful: whether large traders are adding to or reducing their long positions tells you more than whether the number is high or low.
An extreme long/short ratio can persist for quite a long time, so trading against it based on this alone can be quite risky.
The same data can mean very different things in different market conditions, so don’t apply any single rule of thumb blindly.
People often ask what the large-trader long/short position ratio means. This is how I understand it.
Compared with the reading at any given moment, the direction in which the ratio is moving is often more useful: whether large traders are adding to or reducing their long positions tells you more than whether the number is high or low.
An extreme long/short ratio can persist for quite a long time, so trading against it based on this alone can be quite risky.
The same data can mean very different things in different market conditions, so don’t apply any single rule of thumb blindly.
