What This Futures Market Chart Tell Us and How to Use It (auguts 3, 2025 Simple Guide $BTC $ETH $XRP
Aslam mu alakum,
Hope you all will be happy and fine. Today is August 3, 2025. I want to share something about this chart from Binance Futures. This chart show us how many people doing long trade and how many doing short trade.
In this picture, it show:
Long: 60.54%
Short: 39.46%
The number in middle is 1.53. This mean more people thinking price will go up. So they are opening long position.
This is called Long/Short Ratio. If number is more than 1, then long is more. If number is less than 1, then short is more. So today, this index is positive for long side.
But we not follow only this. Because many time, when long is high, market can go down fast. Because big traders try to hit stop loss of long traders. So be careful.
My simple tips
Don't trust only this chart. Use also support and resistance lines.
If long ratio very high (like 70% or more), maybe big drop can come.
If short ratio is high, then short squeeze can happen and price go up fast.
If you want to trade, better wait for good setup, not only follow this index.
This chart is helpful, but not 100% true. We use it like one signal, not full decision. I also learning this slowly. I hope you understand little bit from me.
Thank you for read. Allah Hafiz.