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Overview

Net Longs/Shorts overlays both net long and net short positioning from order book depth data on a single subchart. This combined view reveals the balance (or imbalance) between passive buyers and sellers, providing a direct read on order book sentiment. Instead of switching between two separate indicators, this combined view lets you instantly see which side has more conviction and how the balance shifts over time.

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How It Works

The indicator overlays two series on the same chart:
  • Net Longs (bid-side depth bias) shown in green
  • Net Shorts (ask-side depth bias) shown in red
Both series use the same depthIndex for consistent depth comparison. A neutral color highlights zones where longs and shorts are approximately equal.

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Chart Type

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Settings

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Interpretation

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Dominant Side

When one series is consistently above the other, that side of the market has more passive positioning:

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Convergence and Divergence

When longs and shorts converge toward the same level, expect increased volatility. The balanced positioning means neither side has a clear edge, and a catalyst will likely trigger a directional move.

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Crossover Signals

When the net longs line crosses above net shorts, buying interest is overtaking selling interest — a potential bullish signal. The reverse crossover suggests growing bearish pressure.

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Extreme Imbalances

Large gaps between the two series indicate strong one-sided positioning. While this confirms the current bias, extreme imbalances can also set up contrarian reversals when the dominant side gets crowded.

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Reading the Chart

The neutral color (#f59e0b amber by default) appears at crossover points and balanced zones, making transitions between regimes visually distinct.

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Practical Examples

  • Breakout anticipation: Both longs and shorts rising during consolidation — large participation on both sides means one side will be wrong. The breakout direction will trigger forced exits from the losing side.
  • Trend confirmation: Longs consistently above shorts during an uptrend — order book supports the move.
  • Reversal warning: Shorts overtaking longs at a support level — passive sellers taking control.