When the Ratio Is High
A high long share can mean stronger upside expectation. If it becomes too one-sided, liquidation pressure can grow during a move in the opposite direction.
If price rises while long/short ratio and OI both rise, trend participation may be increasing, but funding overheating should also be checked.
When the Ratio Is Low
A high short share can mean stronger downside expectation. If price rebounds, short covering can create a fast squeeze.
If CVD turns buy-dominant while short share is high, rebound pressure is worth checking, but resistance zones and volume still matter.
Check the Methodology
Exchanges calculate long/short ratio differently. Some use account count and others use position size, so the same label can require different interpretation.
Short-term ratio changes are noisy. For trend judgment, compare multiple timeframes and price structure.