Advanced PCR Trading

# **Advanced PCR Trading**

**Put-Call Ratio (PCR)** helps traders analyze market sentiment by comparing put and call option volumes. Advanced PCR analysis enhances **trend prediction and risk management**.

## **1️⃣ Deep PCR Analysis**
✅ **OI-Based PCR:** High **Put OI** at support → Bullish, high **Call OI** at resistance → Bearish.
✅ **PCR Trend Shift:** Sudden spikes indicate **trend reversals or strong momentum**.
✅ **Strike-Wise PCR Analysis:** Identifies **key support & resistance levels** for option trading.

## **2️⃣ Trading Strategies Using PCR**
✅ **Extreme PCR Levels:**
🔹 **PCR > 1.5:** Overloaded with puts → **Potential short covering rally**.
🔹 **PCR < 0.5:** Too many calls → **Risk of market correction**.
✅ **PCR & Price Action:** Combine with **support-resistance and volume analysis** for confirmation.

### **Conclusion**
Advanced PCR trading helps in **trend confirmation, identifying reversals, and managing risk**, making it a valuable tool for options traders. 🚀