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This is me, 5'4 with a large. I would go medium personally, just because of the width and sleeve length. It also depends on your body type and what type of fit you want.
When I'm not wearing layers underneath (I am wearing them in the photos) it is at my knees. With layers, its about 3-4 inches above the knees. But mostly it is just long sleeved and it is also very wide.