To clearly understand how the market is changing, reversing, and fluctuating, the first thing we need to do is gain basic market information through charts and trading data according to time frames.😀

Like the other day, I wondered how to understand the information about the long-short position ratio of the futures market $SAGA , sometimes it went up to 120 and then down to 80.😅

Through research, long - short position ratio = % accounts in long positions / % accounts in short positions (At only 1 time)😀. In which, % long or short accounts = number of long (or short) accounts/total number of accounts in open positions (both long+short). So at a ratio of 120 it means % long account/% short account = 120 (x/y=120 and x+y = 100) so % short account = 100/121 = 0.8264%, % account long account = 120*y = 99.1735%.

Thus, out of 100,000 accounts participating in the futures market, with open positions (long or short), there are 99,173 people opening long positions, only 827 people are opening short positions. 😅

Through this ratio, we understand the trends of future market participants, but the real fluctuations are not determined by this majority.🤪 #binance #futuresignal #longshort