PCR based Sentiment Indicator

Options & Futures
1

Course Name: Trading using Options Sentiment Indicators, Section No: 3, Unit No: 12, Unit type: WaterMarkVideo

Can you please advise In PCR sentiment strategy why PCR based on Volume is used instead of PCR based on OI ? Isnt OI based PCR more preferred approach until and unless its purely intraday strategy which can be volume based ?

2

Hi,

You are right in a way. Each has its uses and depending on how you are interpreting it, you can choose volume or OI. Further, you can also use volume when you are looking at recent market sentiment while OI helps you understand overall market sentiment. In the course, the volume based PCR was used.

Hope this helps.

3

Thanks so much for your response.