The ratio of long and short positions of perpetual contracts (also known as the long-short ratio) is an important indicator to measure market participants' expectations of future price trends. This ratio is usually interpreted in the following way: ͏
Number of long positions/number of short positions:
Greater than 1: It means that the number of longs exceeds the number of shorts, and the market is bullish, which may mean that the potential for price increases has increased.
Less than 1: It means that the number of shorts exceeds the number of longs, and the market is bearish, which may mean that the downward pressure on prices has increased.
Interpretation of extreme values:
High ratio (such as greater than 2): It may mean that the market is too optimistic, there is a risk of bubble, and the price may adjust.
Low ratio (such as less than 0.5): It may mean that the market is too pessimistic and there is a chance of rebound.
Combined with other indicators: Relying solely on the number of positions is not enough to make accurate judgments. It is necessary to conduct a comprehensive analysis of other indicators such as closing price trend, trading volume, market sentiment, etc.
Market dynamics: Pay attention to the dynamic changes of the market. The ratio of short and long positions will fluctuate with market sentiment and news events, so you should remain flexible when reading and interpreting.
In short, the ratio of long and short positions is an important market sentiment indicator. By reading this ratio, you can better understand the investor sentiment and potential market trends. #币安合约锦标赛 #币安合约跟单