#比特币布林带收窄至低水平 In cryptocurrency trading, the 'long-short ratio' and 'large account long-short ratio' are two important indicators that measure the bullish (long) and bearish (short) sentiments in the market, usually generated by tracking the holding proportions of different account groups. These data can help traders assess market trends and understand potential long-short distributions. Here are detailed explanations of both:
1. Generation of the long-short ratio
The long-short ratio is the proportion of long positions to short positions among all accounts in the market. It is usually compiled and published by trading platforms, calculated as follows:
- Long-short ratio = Long position volume / Short position volume.
**Impact**: The long-short ratio reflects the overall sentiment of the market. If long positions far exceed short positions, it indicates a generally bullish market; conversely, it indicates strong bearish sentiment.
Trading strategy:
- When the long-short ratio is excessively high, market bullish sentiment is overly concentrated, leading to a potential 'long squeeze', making the market prone to corrections.
- When the long-short ratio is low, it indicates that shorts are dominant, and the market may be approaching an oversold area, presenting a potential rebound opportunity.
2. Generation of the large account long-short ratio
The large account long-short ratio focuses on the long-short proportion of large position accounts. This indicator reflects the holdings of institutions, large accounts, or whales, usually better representing large capital movements than ordinary accounts. Its calculation method is similar to the long-short ratio, but only considers data from large position accounts.
**Impact**: The trading movements of large accounts often have a significant impact on market trends because these accounts have larger trading volumes that can drive market price fluctuations. If large accounts are predominantly long, the likelihood of a market rise increases; conversely, if large accounts are predominantly short, the chances of a market decline increase.
Trading strategy:
- The long-short ratio for large accounts is higher than the ordinary long-short ratio: This indicates that large accounts are more bullish than retail investors, which may support a market rise, and one might consider going long.
- The long-short ratio for large accounts is lower than the ordinary long-short ratio: This indicates that large accounts lack confidence in the market's rise, potentially leading to sell-offs and declines. At this time, one might consider shorting or reducing positions.
Utilizing both the long-short ratio and the large account long-short ratio for trading
By combining the long-short ratio and the large account long-short ratio, market trend changes can be captured more accurately:
- Both the long-short ratio and the large account long-short ratio are high: Overall market sentiment is bullish, supported by large accounts, and may continue to strengthen in the short term.
- High long-short ratio and low ratio for large accounts: The market sentiment is bullish, but large accounts remain cautious, which limits the upward potential and poses a risk of correction.
- Both the long-short ratio and the large account long-short ratio are low: The market sentiment is strongly bearish, with large accounts also bearish, indicating that the market may decline further.
- Low long-short ratio and high ratio for large accounts: Retail investors are heavily bearish, but large accounts are accumulating at low levels, which may lead to a market rebound.
Based on these two indicators, traders can flexibly adjust their positions in line with the capital flow of the market leaders, choosing suitable entry and exit timings.