Just chatting, a friend asked me how to interpret the long/short ratio, so I used $BTC as an example:
The overall account long/short ratio is 2.71, meaning 73% are long and 27% are short.
A ratio above 1 means more traders are going long; below 1 means a higher proportion are going short. But most importantly: the more extreme the number, the more cautious you should be about a move in the opposite direction.
The overall account long/short ratio is 2.71, meaning 73% are long and 27% are short.
A ratio above 1 means more traders are going long; below 1 means a higher proportion are going short. But most importantly: the more extreme the number, the more cautious you should be about a move in the opposite direction.