To give you my honest take, a friend asked me how to interpret the long/short ratio, so I’ll use $JCT as an example:
The overall account long/short ratio is 1.79, meaning 64.1% are long and 35.9% 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 one-sided the ratio, the more wary you should be of a move in the opposite direction.
The overall account long/short ratio is 1.79, meaning 64.1% are long and 35.9% 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 one-sided the ratio, the more wary you should be of a move in the opposite direction.