|
Quote: |
|
 |
|
|
Do you use PC ratio real time or at fixed intervals? |
|
|
|
|
I use the PC ratio in real-time. I use it as a warning tool to judge the number of longs vs shorts. If the pc ratio is high, it means that everybody is short. If everyone is short there is no one else left to sell.
Therefore, I can use this signal to find long setups.
If the PC ratio is low, it means that everybody is long. There is no one left to buy so I will look for a short signal. It use it as a contrary opinion tool.
The key levels on the pc ratio I look for is 0.6 and 1.0.
Note: Stay away from it during options expiration week. This indicator becomes unreliable.