Tag: Volume PCR

Volume PCR (Put Call Ratio) is a technical indicator that can be used to gauge short-term market sentiment. A higher Volume PCR indicates that more put options are being traded than call options, which suggests that bearish sentiment is increasing. Volume PCR is negatively correlated with the underlying, meaning that it often rises during the fall in the underlying and often falls during the rise in the underlying. This means that Volume PCR can help us get the first sight of a turnaround in a bull market. Traders can use Volume PCR to trade more confidently in a bull market by looking for Volume PCR to be at a recent bottom.