Why should a trader bother about PCR
Hello friends Yet another interesting topic for you PRICE OPEN INTEREST INTERPRETATION Increase in Price Increase in OI Indication of new money coming and indicates the further continuance of uptrend Increase in Price Decrease in OI The increase in price is due to short covering of positions Decrease in Price Increase in OI The decrease in price is due to newly built short positions and further weakness is predicted Decrease in Price Decrease in OI Traders unwinding their long positions by selling existing contracts Option Chain Nifty – Interpretation of Open Interest: How to interpret “Nifty Option Chain: Open Interest | Put Call Ratio Tracker”? In Summary: High PCR means the market is bullish because the option writers are inclined to write puts. Low PCR means bearish sentiment – because option writers are not willing to write puts but instead write calls. The put-call ratio (PCR) is a popular tool specifically designed to gauge the overall sentiment (mood) of the ma...