The rate above 0.5 doesn't necesarily , though, and the indicator is "timeframe" agnostic. So take into account that there could be tons of longs positions that were opened since back before summer 2017, It seems to be too of positions opened at prices below 4.000$. That's why the average seems to be around 0.6.
The blue lines indicates current ratio (or on close for past bars). The red line is the max ratio (higher shorts versus lowest longs).
- Now you can see the change ratio of longs (green), shorts (red) and shorts+longs (gray) per candle. For example, a value of -0.1 for shorts means the shorts has drop a 10% respect to the previous bar/candle.
- The longs/total ratio (blue) now applies a -0.5, to center the line with respect to the other lines, so they are more comfortable to see. A value of 0.1 means the longs/total ratio is 0.5+0.1, or 60% of total.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.