$BTC Network-wide account long/short ratio: 3.25 (76.5% long / 23.6% short), compared with 3.23 an hour ago.
When I first started, I always thought a long-biased ratio meant there were more long positions than short positions across the entire market. It took me a while to understand that the total number of long and short positions across the market is always equal. The account long/short ratio only compares the number of accounts holding long positions with those holding short positions, regardless of position size.
The long/short ratio alone doesn't indicate market direction. It's usually viewed alongside open interest, funding rates, and price.
Calculating position size based on where you place your stop-loss is much more reliable than trading on gut instinct.
When I first started, I always thought a long-biased ratio meant there were more long positions than short positions across the entire market. It took me a while to understand that the total number of long and short positions across the market is always equal. The account long/short ratio only compares the number of accounts holding long positions with those holding short positions, regardless of position size.
The long/short ratio alone doesn't indicate market direction. It's usually viewed alongside open interest, funding rates, and price.
Calculating position size based on where you place your stop-loss is much more reliable than trading on gut instinct.