Put call ratio calculation

Higher the pcr than 1 higher is the chance of bullish and lower the pcr than 1 , higher is the chance of bearish. Sir, please let me know when the contra trend get reversed , at which higher pcr value the bullish can be bearish and which lower value bearish can be bullish apart from using other indicators of being overbought and oversold

1 Like

friend, only PCR doesn’t indicate anything, other factors like market sentiments, local and global economy, company’s performance etc. play role in this. in past you can see when PCR extremely bullish and market went down or Extremely bearish and rally continued.

1 Like

What is your view in very short term or intraday when pcr is at 1.5 or above or below 0.5 or lower, what the underlying instruments can behave

PCR higher than 1.3 or 1.5 means market is bullish and because people are buying more of stocks and at the same time buying put option to hedge there risk hence the no of put options increases which ultimately leads to higher put call ratio