Overview
Long/Short Ratio displays the ratio of long to short positions from Binance exchange data. It is available for three trader categories:
- Global — All traders on the exchange
- Top Position — Top traders ranked by total position size
- Top Account — Top traders ranked by account value
When the ratio is above 1.0, there are more longs than shorts. Below 1.0, shorts dominate.
How It Works
Binance publishes aggregate long/short ratio data at regular intervals for futures markets. This indicator fetches and displays that data directly, segmented by trader category.
The three categories reveal different aspects of market positioning:
- Global ratio reflects the entire market’s positioning. Extreme readings often serve as contrarian signals — when everyone is long, the market may be overleveraged for a long squeeze.
- Top Position ratio shows how the largest position holders are positioned. These are often more informed participants.
- Top Account ratio shows positioning by account value. High-net-worth traders may have different views than the crowd.
When all three ratios diverge from price direction, it creates a strong contrarian signal. For example, if all three ratios show extreme long positioning while price stalls, a long squeeze becomes likely.
Interpretation
| Pattern | Meaning |
|---|
| All ratios > 1.5 | Heavily long market — squeeze risk |
| All ratios < 0.7 | Heavily short market — short squeeze risk |
| Global long + Top short | Retail bullish, smart money bearish — bearish signal |
| Global short + Top long | Retail bearish, smart money bullish — bullish signal |
| All ratios converging to 1.0 | Balanced positioning — no directional edge |
Contrarian Signals
Long/Short Ratio is most useful as a contrarian indicator. Extreme crowded positions tend to unwind violently:
- Extreme longs + price near resistance = high probability short setup
- Extreme shorts + price near support = high probability long setup
Smart Money Divergence
When Global ratio diverges from Top Position and Top Account ratios, it reveals a disconnect between retail and institutional positioning. Follow the “top” categories for directional bias.
Settings
| Parameter | Description | Default |
|---|
period | Data period: 5m, 15m, 30m, 1h, 2h, 4h, 6h, 12h, 1d | 5m |
showGlobal | Display the global L/S ratio line | true |
showTopPosition | Display the top-position L/S ratio line | true |
showTopAccount | Display the top-account L/S ratio line | true |
globalColor | Color for the global ratio line | #3b82f6 |
topPositionColor | Color for the top-position ratio line | #f59e0b |
topAccountColor | Color for the top-account ratio line | #a855f7 |
lineWidth | Thickness of ratio lines | 1.5 |
displayMode | Visualization style: line or columns | line |
Data Period
The period setting controls the granularity of the L/S ratio data from Binance:
| Period | Use Case |
|---|
5m | Scalping — rapid positioning changes |
15m–30m | Intraday trading |
1h–4h | Swing trading |
12h–1d | Positional trading — broader sentiment |
Long/Short Ratio data comes directly from Binance. It is only available for Binance Futures symbols. The data may have a slight delay (typically 1-2 minutes) compared to real-time price data.
Display Modes
- Line — Default. Three separate colored lines plotted against a 1.0 baseline. Best for comparing the three categories.
- Columns — Histogram view. Less common but useful when focusing on a single category.
Practical Examples
Long Squeeze Setup: All three L/S ratios are above 2.0 (extreme long positioning). Price approaches a major resistance level and stalls. A small sell-off triggers liquidations, and the crowded long side rapidly unwinds — price drops sharply.
Smart Money Fade: Global ratio shows 1.8 (retail heavily long). Top Position ratio is at 0.8 (institutional traders are short). This divergence suggests the “smart money” expects a decline. Fade the retail crowd.
Confirmation Signal: Price breaks above a key level. Global L/S ratio starts rising from 1.0 toward 1.3 — participants are adding longs after the breakout, confirming the move has participation rather than just stop runs.