How do you use the long/short ratio? Take $SOL , for example: the global account long/short ratio is 2.72 (long 73.1% / short 26.9%) (2.72 one hour ago).
I usually look at it in three steps:
① Check for extremes: it’s currently leaning toward an extreme, and the dominant side is often hunted by a wick;
② Check for changes: it’s basically unchanged from an hour ago;
③ Check for divergence: the price is up 3.38% over 24h, with no obvious divergence for now.
The data is a thermometer, not a steering wheel.
I usually look at it in three steps:
① Check for extremes: it’s currently leaning toward an extreme, and the dominant side is often hunted by a wick;
② Check for changes: it’s basically unchanged from an hour ago;
③ Check for divergence: the price is up 3.38% over 24h, with no obvious divergence for now.
The data is a thermometer, not a steering wheel.