Long/Short Ratio vs Market Sentiment

The proportion of accounts or positions on the long side versus the short side of a derivatives market; extreme readings are contrarian signals — very high ratios indicate crowded longs; very low ratios indicate crowded shorts; most actionable when confirmed by funding rate direction.

The collective emotion and bias of market participants toward an asset, typically expressed as bullish or bearish; reflected in positioning, volatility, and behavior patterns but difficult to measure objectively.