The long-short ratio reveals account structure imbalances rather than a direct confrontation of trade volumes, according to a recent analysis by @agintender. By dissecting trading volume, open interest, account numbers, and position sizes, the analysis highlights the uneven distribution of positions between retail investors and whales. Divergences in these ratios often signal potential trend reversals. Extreme long-short ratios can also indicate liquidation risks, serving as crucial indicators of market fragility and potential short or long squeeze opportunities.
Imbalance in Balanced Markets: Insights from Long-Short Ratios
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.