🧠A metric that every trader should know is the Top Trader Long/Short Ratio (Position) compared to the Top Trader Long/Short Ratio (Account). It points to highly accurate signals for Long positions, but why does this happen, and why do traders not know about this metric?
Firstly, it's a customized metric because traders can't access it on commonly known platforms. In other words, it's hidden from the majority of analysts.
But basically, when the positions of the top 20% of trades on Binance and Bybit rise significantly in relation to the sentiment of accounts on these exchanges, the price action rises rapidly.
The reverse is also true to switch trends because when the accounts of the major trades tend to become very bullish, in practice they outweigh the values held in leveraged positions, causing the price to undergo dumps in search of forced liquidations. This explains why the majority of liquidations are Long positions.
But the magic of the relationship between these metrics shows that we are able to provide insights that are rarely found in the market, allowing you to make more informed decisions by going against the herd effect that occurs in the cryptocurrency market.
