How the Put Call Ratio Can Guide Your Trading
The put call ratio is a popular market indicator used to assess investor sentiment. It compares the volume of put options to call options, providing insights into whether traders are generally more bearish or bullish. A higher ratio indicates a bearish sentiment, while a lower ratio suggests bullishness. Traders use the put call ratio to predict potential market reversals or confirm trends. By understanding this ratio, investors can refine their strategies and make more informed decisions in the financial markets.
Comments
Post a Comment