What is this indicator?
Shows the ratio of long position volume to short position volume in the derivatives market. Heavy crowding on one side (say, long) sometimes sets the stage for a sharp move in the opposite direction (a cascading liquidation).
How to read the chart
Sharp changes or a move outside this metric's normal range often coincide with important price turning points, and it's used as a secondary confirmation alongside technical analysis.
Practical tip
On-chain data is best used to complement technical analysis, not replace it; interpreting a single metric in isolation can be misleading.