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Order Flow Getting Started Tutorial
Large-amount entrusted orders (main orders)
Liquidation Heatmap
Liquidation Map
Basic introduction to order flow
What is order flow?
Order Flow Getting Started Tutorial
Order flow
What is the long-short position accounts ratio?
Manual of contract data for newer
Risk management in contract trading
Commonly used indicators for contract data
Costs in cryptocurrency trading
What positive or negative funding rates means?
Arbitrage opportunities in the cryptocurrency market
What are terms mark price、last price and estimated liquidation price?
What determined funding rate?
Basis and premium
Liquidation and delivery
What are USDT contract and USD contract?
What difference between open interest and trading volume?
Differences between cryptocurrency perpetual contract trading and leverage trading
How to keep balance for price in perpetual contracts and spot?
What categories of cryptocurrency derivatives?
What are Golden Cross and Death Cross, and how are they used in trading?
What is liquidity
What is VWAP indicator and how to use it in cryptocurrency trading?
What is the RSI indicator, how to see overbought and oversold?
How to Read Order Book Data?
The Analysis and Trading Applications of Long-Short Position Ratio and Open Interest
The Significance and Application of Cryptocurrency Liquidation Data
How is funding rate calculated for cryptocurrency perpetual contracts?
How to interpret the open interest data of cryptocurrency contracts?
What is the purpose of the cryptocurrency funding rate?
What is Top trader account long/short ratio
What is exchange top trader positions long/short ratio
What is Bitcoin open interest?
What is perpetual contract funding rate?
What is BTC liquidation or what is cryptocurrency liquidation?

The Analysis and Trading Applications of Long-Short Position Ratio and Open Interest

The combination of long-short position ratio and open interest can be used for market analysis and trading decision-making.

  1. Analyzing market sentiment: The long-short position ratio reflects the sentiment and preferences of market participants. When the proportion of long positions is high, it indicates a bullish sentiment and may suggest an upward trend. Conversely, a high proportion of short positions indicates bearish sentiment and may suggest a downward trend. Additionally, an increase in open interest can signify the level of agreement among market participants regarding the current trend.
  2. Determining support and resistance levels: Open interest can be used to identify support and resistance levels. A higher open interest may indicate more unsettled contracts that need to be closed, which can create support or resistance levels around a particular price. The long-short position ratio can provide additional confirmation. When the proportion of long positions is high and open interest is also high, it may indicate stronger support levels. Conversely, when the proportion of short positions is high and open interest is also high, it may indicate more significant resistance levels.
  3. Observing trend changes: Changes in the long-short position ratio and open interest can be used to observe shifts in market trends. For example, when both the proportion of long positions and open interest are increasing, it may indicate an upward trend. Conversely, when both the proportion of short positions and open interest are increasing, it may indicate a downward trend. These changes can provide traders with insights to make adaptive trading decisions when trends are shifting.

In summary, the long-short position ratio and open interest can be combined to analyze market sentiment, determine support and resistance levels, and observe trend changes. However, it is important to note that these indicators are supplementary tools, and trading decisions should consider other technical analysis indicators and market factors.

Disclaimer:
Information content does not constitute investment advice, investors should make independent decisions and bear their own risks