PCR (put/call ratio) — put volume ÷ call volume. >1 = more puts traded (hedging/bearish); <1 = more calls (bullish/risk-on); ~1 = balanced. It measures CROWD BREADTH in contract counts — distinct from premium-$ flow, IV skew, or dealer gamma.
Term structure — PCR at each expiry. Front (0–14d) = retail / same-day flow; back (31–90d) = institutional strategic hedges. The SHAPE matters more than any single number.
Divergence (the key tell) — low front PCR (retail chasing calls) + high back PCR (institutions buying puts) = smart money hedging into euphoria, a classic top precursor. The inverse (high front, calm back) is often a dip-buy setup.
Extremes are contrarian — PCR >1.5 across the curve = near capitulation (bounce risk); <0.5 = total complacency (pullback risk). Read RELATIVE to the curve, never an absolute level alone.
The call — each horizon reads its matching tenor's PCR vs the curve average → ↑ bullish / ↓ bearish / → neutral. A softer, slower signal — feeds Oracle at a lower weight; refined by Phase-3 calibration.