👀👀If you are looking for precision in entering and exiting orders, pay attention to the simple indicator I am about to present.
Many people are probably familiar with the first indicator, but now, we will focus on the second indicator, which is the 1H Long/Short Ratio of the cryptocurrency futures market.
Many of you may wonder if this data is specific to a particular exchange. The answer is yes, and the data we are referring to is from #Binance . With a 24-hour trading volume of up to $13.3 billion, Binance holds an overwhelming market lead. Even #Coinbase , which is second, with a volume of only $2 billion, is still six times less than Binance.
But why is this data important? It is related to the ratio of total long and short positions held by top traders, namely the ratio of net long and short positions to the total open positions of the top 20% of users. Through this indicator, retail investors can timely grasp the changes in the movements of large traders, thereby adjusting AE's trading strategy.
Remember that the cryptocurrency market has the characteristics of a zero-sum game. When the ratio of long positions reaches a high threshold, the price may fall due to the reverse harvesting phenomenon. On the contrary, when the number of short positions increases, the market can be seen under pressure. Finally, remember that only a few people in this market actually make a profit. As Warren Buffett once said: "Be fearful when others are greedy and be greedy when others are fearful"#Write2Win