This is very useful indicator for day-trading.įor intraday trading – live PCR trend can be extremely reliable indicator. See the correlation between ‘Nifty Put Call Ratio Live Chart’ and the Nifty Spot Price. If the PCR ratio stays above the previous day closing PCR then I search for long trade patterns only” Nifty Option Chain: Put Call Ratio: “If PCR ratio stays below the previous day closing PCR, then market is likely to be bearish and I look for short trade setups. Once everyone has bought then there is no one left to buy and the market starts to drift lower.
Then the medium and finally the wide SL until all the stops are taken out.īy the time all stops are taken out the market participants turn bullish and want to remain on the long side of the market. The group of tight stops get hit first, which generates a buying pressure taking market higher. Some will use a very tight SL, others may use medium and remaining using wide stop loss. Now all these market participants will be using some sort of stop loss. This drifting eventually hits the first set of stop loss orders. With nobody left to sell, there is no selling pressure on the market, and they start to drift higher. With all market participants bearish and now sitting on short positions, a very interesting thing takes place – there is nobody left to sell. For the sake of simplicity, lets assume that everyone in the market is bearish at a given time and because of this prevalent feeling everyone is entering shorts in stocks, indices and even buying puts.
#Real time pcr data analysis excel how to#
How to combine Nifty Option Chain PCR in your trade plan?
#Real time pcr data analysis excel download#
No need to use excel to download Open Interest of Puts and Calls separately and then running the formula to calculate Put Call Ratio. You can also see Nifty Change in Open Interest & Open Interest in Nifty Options here. In the above chart we have automated the calculations for you so you can get live view of what market is thinking. This data is easily available in option chain Nifty. The formula is very simple to calculate – take the put options Open Interest (from the Option Chain table) and divide by the Open Interest of calls. The formula remains the same whether it is the Option Chain of Nifty, Bank Nifty or any stock. The Put Call Ratio measures how many put options contract s are open versus call options contrancts in the Option Chain. PUT CALL RATIO of NIFTY OPTION CHAIN – THE KEYS TO HIGH PROBABILITY TRADE:Īs a trader, what would you give to be able to know what the rest of the market participants are doing at any given point in time? Here is this secret report card, the put call ratio of Nifty Option Chain is as close to actually having this information as a trader is ever going to find.