Put Call Ratio (PCR) – Simple English Explanation
PCR = Total Put Options / Total Call Options
It shows what traders are expecting in the market.
🔍 What PCR Tells You
1️⃣ PCR > 1 (High PCR)
More Put options are being bought.
Market sentiment = Fear
Many traders expect the market to fall.
Contrarian view → Market may bounce up.
Simple meaning:
👉 Market might be oversold → A rise can come.
2️⃣ PCR < 1 (Low PCR)
More Call options are being bought.
Market sentiment = Greed / Confidence
Many traders expect the market to go up.
Contrarian view → Market may correct down.
Simple meaning:
👉 Market might be overbought → A fall can come.
3️⃣ PCR around 1 (0.90 – 1.10)
Balanced sentiment
Market may stay in range.
🎯 How Traders Use PCR
✔ If PCR > 1.20
Too much fear
Market may go up from support
✔ If PCR < 0.80
Too much greed
Market may fall from resistance
⚠ Important Note
PCR should not be used alone.
Always combine with:
Trend
Support & Resistance
Option Chain
Price Action
PCR = Total Put Options / Total Call Options
It shows what traders are expecting in the market.
🔍 What PCR Tells You
1️⃣ PCR > 1 (High PCR)
More Put options are being bought.
Market sentiment = Fear
Many traders expect the market to fall.
Contrarian view → Market may bounce up.
Simple meaning:
👉 Market might be oversold → A rise can come.
2️⃣ PCR < 1 (Low PCR)
More Call options are being bought.
Market sentiment = Greed / Confidence
Many traders expect the market to go up.
Contrarian view → Market may correct down.
Simple meaning:
👉 Market might be overbought → A fall can come.
3️⃣ PCR around 1 (0.90 – 1.10)
Balanced sentiment
Market may stay in range.
🎯 How Traders Use PCR
✔ If PCR > 1.20
Too much fear
Market may go up from support
✔ If PCR < 0.80
Too much greed
Market may fall from resistance
⚠ Important Note
PCR should not be used alone.
Always combine with:
Trend
Support & Resistance
Option Chain
Price Action
İlgili yayınlar
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.
İlgili yayınlar
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.