$BTC Network-wide account long-short ratio: 3.2 (long 76.2% / short 23.8%).
I used to think that a long-short ratio above 1 meant there were more long positions than short positions across the entire market. Later, I realized that the total volume of long and short positions across the market is always equal. The account long-short ratio measures how many accounts are net long versus net short, regardless of position size.
Rather than looking at a single value, it’s usually more useful to watch which way the ratio is moving and how quickly.
With leveraged positions, first work out whether you can withstand the worst-case scenario, then see what the indicators are saying.
#BTC
I used to think that a long-short ratio above 1 meant there were more long positions than short positions across the entire market. Later, I realized that the total volume of long and short positions across the market is always equal. The account long-short ratio measures how many accounts are net long versus net short, regardless of position size.
Rather than looking at a single value, it’s usually more useful to watch which way the ratio is moving and how quickly.
With leveraged positions, first work out whether you can withstand the worst-case scenario, then see what the indicators are saying.
#BTC
