yes Duster ... low-liquidity means the price should move easily in either direction.
I use it to confirm/negate other indicators. If I deem a stock to be oversold with a nice base building with volume and TA-indicators starting to turn up => I look at the LR and see that it has fallen to a relatively low level. This makes me feel good about getting into it and expecting a good move in the direction of least resistance .. up in this case.
If I see a relatively high LR, I will not enter a position in the stock because it is still too much in the gambling stage without an expectation of a large move ... so even if TA tells me it looks good, if LR says not much reward available yet, I'll wait for a better risk/reward.