Many people like to look at the "long-short ratio" to judge the market trend, but how feasible is this method? Let's understand the "long-short ratio" together.

I have integrated all the content into the image below.

Here’s the conclusion directly:

(1) The long-short ratio mainly looks at "what everyone is doing" and cannot predict the price trend.

(2) The long-short trading volume ratio can sometimes reflect market sentiment, but it is only useful during market fluctuations; its reference significance is much smaller in trending markets.

(3) I recommend looking at: funding rates, basis (futures price - spot price).