put call ratio

Discussion in 'Index Futures' started by ericta, Mar 7, 2007.

  1. ericta



    I have some question about pc ratio
    1) is it only for short-term/intraday use?
    2) what's the effective overboutht/sold level for trading YM?

    Thank you
  2. To be honest the Put/Call Ratio is something I don't use in my every day trading. However I'd taken some notes on it from a seminar awhile back and will post them here for you. Hope it helps.

    + If the PC ratio gets over 1.0 intraday look to ignore short setups and start looking for longs.
    + Anything above .85 or so is more of a buy signal. This means there are a TON of bears in the market and a floor will be put in soon.
    +This wont happen immediately, the PC ratio is a slower indicator. If its uptrending, so should the market. To reiterate , be looking for an extreme range in the PC ratio.
    +Higher # is more puts being bought, lower # is more calls being bought.. If the market is rallying strong, you want to see the PC rallying. If its in .070 and 0.90 territory ignore it as a factor. This is a normal or neutral range.
    + Most people only use this tool from 10am until 4pm

    Also its still not available in eSignal yet.

    LINK: http://www.cboe.com/data/IntraDayVol.aspx Free putcall ratio data

    CajunSniper / Puretick.com Administrator-Trader
  3. ericta


    Great. Thank you Spectra.
  4. eSignal Support

    eSignal Support eSignal

  5. Scott,

    Why wasn't I notified on my personal eSignal hot line?? Good gracious. Yes! Thanks..!!

    CajunSniper / Puretick.com Administrator-Trader
  6. I think p/c ratio has been less and less useful. The problem with this kind of contrarian indicator is that once most people realizes it as a contrarian indicator and begin to use it, it will be ineffective instantly simply for the reason that too many people are using it.