What is Long/short ratio?

The long/short ratio compares traders (or position size) positioned long versus short. Extreme readings flag an over-crowded side that is vulnerable to a squeeze.

How to read it

A very high long/short ratio with positive funding is a crowded long. Pair it with price action: crowding plus stalling price is a reversal warning.

FAQ

Is the long/short ratio reliable alone?

No — combine it with funding and open interest. Crowding only matters when price stops rewarding the crowd.

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