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anand512
White Belt
Joined: 26 Jun 2009
Posts: 109
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Post: #106  Posted: Fri Jul 11, 2014 1:52 pm Post subject: |
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DIVI'S LAB PCR DOWN TO 0.62
WHAT'S MEANING ? |
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chiragbvyas
White Belt
Joined: 18 Feb 2010
Posts: 469
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| Post: #107 Posted: Fri Jul 11, 2014 1:56 pm Post subject: hi |
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Dear Friends,
How to calculate PCR ? I am interested to learn this stuff but nobody know it properly at my place. From where to get data and how to use it for better trading.
If welgro sir or any of our friends know then pls post the excel sheet, it will be a great help for my learning process.
Thanks. |
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anand512
White Belt
Joined: 26 Jun 2009
Posts: 109
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| Post: #108 Posted: Fri Jul 11, 2014 3:32 pm Post subject: |
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Pcr live value can be obtained from no. Of web site
You can get direct value
No need of calculating |
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chiragbvyas
White Belt
Joined: 18 Feb 2010
Posts: 469
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| Post: #109 Posted: Fri Jul 11, 2014 3:36 pm Post subject: |
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| anand512 wrote: | Pcr live value can be obtained from no. Of web site
You can get direct value
No need of calculating |
O k. But how to use it for trading ?
any rules parameters to follow ?
pls answer in detail and if possible pls post couple of example so anyone can understand easily.
Thanks. |
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anand512
White Belt
Joined: 26 Jun 2009
Posts: 109
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| Post: #110 Posted: Fri Jul 11, 2014 4:05 pm Post subject: |
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| Welgro sir will explain in detail |
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anand512
White Belt
Joined: 26 Jun 2009
Posts: 109
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| Post: #111 Posted: Fri Jul 11, 2014 4:05 pm Post subject: |
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| Welgro sir will explain in detail |
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chiragbvyas
White Belt
Joined: 18 Feb 2010
Posts: 469
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| Post: #112 Posted: Fri Jul 11, 2014 4:18 pm Post subject: |
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| anand512 wrote: | | Welgro sir will explain in detail |
Me too awaiting his valued input regarding PCR . |
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reachchirag
White Belt
Joined: 28 Nov 2012
Posts: 102
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| Post: #113 Posted: Fri Jul 11, 2014 4:42 pm Post subject: level |
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Dear Welgro,
Please give level for Reliance, ICICI Bank, SBI and L&T. Is market in a consolidation phase or downtrend?
As sometime back all these stocks target was set higher. So, can we accumulate or wait |
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welgro
Brown Belt
Joined: 24 Sep 2012
Posts: 1784
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| Post: #114 Posted: Fri Jul 11, 2014 6:24 pm Post subject: |
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| anand512 wrote: | DIVI'S LAB PCR DOWN TO 0.62
WHAT'S MEANING ? |
You can only compare PCR in most active traded scripts only.
Divislab is not a active traded counter in options segment.
So dont calculate PCR in Divislab |
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welgro
Brown Belt
Joined: 24 Sep 2012
Posts: 1784
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| Post: #115 Posted: Fri Jul 11, 2014 6:28 pm Post subject: |
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| chiragbvyas wrote: | | anand512 wrote: | | Welgro sir will explain in detail |
Me too awaiting his valued input regarding PCR . |
Put call ratio can be used as additional confirmation for taking a trade, moreover it can be found easily on NSE’s website. Before explaining you put call ratio analysis, I will tell you most important fact about options trading it is: “About 95% option contracts expire worthless.” This means most profitable group of option trader is “Option Writers”. Now you will get put call ratio from this NSE’s link, this is updated daily and it’s only for nifty option.
Put call ratio is a ratio of total traded put option against call option for a given day. This is actually contrarian indicator for near term trend, on this indicator a reading above 1 will be a bullish signal on nifty future, while ratio below 1 is a bearish signal. Whenever trader has doubt about the trend he can just look at put call ratio and get a clear trading idea.
Today’s put call ratio is 0.8. Now this fig. is clearly below 1 so call option writing (shorting) is more than put option, in simple words smart people is expecting nifty future will move lower level in coming sessions. Now suppose if Put call ratio is 1.1, here it is above 1 so put writing is more than call writing. This is because large traders are betting that nifty future may correct in near term.
Note: just i updated the logic ,Don’t compare PCR value is in above 1 or below 1, you can understand PCR changes with nifty’s momentum.
See yesterday PCR is 0.77 with today’s PCR is 0.73.
So what do you understand?
Yes, large traders today build heavy short positions in call options.Hmm... They are expect nifty will be go more down levels.
what will we to do ? We can also take short position otherwise Better to avoid open positions in against the trend. |
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welgro
Brown Belt
Joined: 24 Sep 2012
Posts: 1784
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| Post: #116 Posted: Fri Jul 11, 2014 6:29 pm Post subject: |
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| chiragbvyas wrote: | | anand512 wrote: | | Welgro sir will explain in detail |
Me too awaiting his valued input regarding PCR . |
Put call ratio can be used as additional confirmation for taking a trade, moreover it can be found easily on NSE’s website. Before explaining you put call ratio analysis, I will tell you most important fact about options trading it is: “About 95% option contracts expire worthless.” This means most profitable group of option trader is “Option Writers”. Now you will get put call ratio from this NSE’s link, this is updated daily and it’s only for nifty option.
Put call ratio is a ratio of total traded put option against call option for a given day. This is actually contrarian indicator for near term trend, on this indicator a reading above 1 will be a bullish signal on nifty future, while ratio below 1 is a bearish signal. Whenever trader has doubt about the trend he can just look at put call ratio and get a clear trading idea.
Today’s put call ratio is 0.8. Now this fig. is clearly below 1 so call option writing (shorting) is more than put option, in simple words smart people is expecting nifty future will move lower level in coming sessions. Now suppose if Put call ratio is 1.1, here it is above 1 so put writing is more than call writing. This is because large traders are betting that nifty future may correct in near term.
Note: just i updated the PCR logic ,Don’t compare PCR value is in above 1 or below 1, you can understand PCR changes with nifty’s momentum.
See yesterday PCR is 0.77 with today’s PCR is 0.73.
So what do you understand?
Yes, large traders today build heavy short positions in call options.Hmm... They are expect nifty will be go more down levels.
what will we to do ? We can also take short position otherwise Better to avoid open positions in against the trend. |
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amitagg
Black Belt
Joined: 01 Oct 2013
Posts: 4559
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| Post: #117 Posted: Fri Jul 11, 2014 7:21 pm Post subject: |
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Hi
Did u by any chance post TCS analysis earlier... Results on 17th and was looking for a trade. .... Hmmm,.... On short side....long or short?
Thanks in advance |
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welgro
Brown Belt
Joined: 24 Sep 2012
Posts: 1784
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| Post: #118 Posted: Sat Jul 12, 2014 7:31 pm Post subject: |
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------------
Last edited by welgro on Sat Jul 12, 2014 7:34 pm; edited 2 times in total |
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welgro
Brown Belt
Joined: 24 Sep 2012
Posts: 1784
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| Post: #119 Posted: Sat Jul 12, 2014 7:35 pm Post subject: |
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anand512
White Belt
Joined: 26 Jun 2009
Posts: 109
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| Post: #120 Posted: Sat Jul 12, 2014 9:26 pm Post subject: |
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welgro sir
before 2-3 days you have suggested some modification in my setup
for taking long postion CCI shall be above 50
But i am confused that for taking short position it should be below 50 or below -50.
Pl. clarify it. |
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