{"product_id":"v15663aputra","title":"V.18:8 (56-63):A Put\/Call Ratio Oscillator To Pinpoint Market Conditions by John Summa","description":"A Put\/Call Ratio Oscillator To Pinpoint Market Conditions\nby John Summa\u003cbr\u003e\u003cbr\u003eWho says the put\/call ratio doesn't work anymore? Here's an oscillator that's great for pinpointing intermediate market tops and bottoms.\u003cbr\u003e\u003cbr\u003eWhat's the ideal time to write an\noption? The ideal time to write\na deep out-of-the-money \n(DOTM) put or call options\ncredit spread? While charts\nmay tell you when to exit such\na position, the correct use of\nput\/call ratios offer an excellent\nway of determining just when to\nenter your trade. Here's one approach to interpreting equity-only put\/call ratios, combined with my own volume-weighted,\nput\/call ratio oscillator for finding just when to write your\nDOTM spreads for maximum probability of success.\u003cbr\u003e\u003cbr\u003eDuring any intermediate bull or bear trend, investor moods\ntend to remain slanted in one direction or the other - hopeful\nor worried, driven by greed on one hand and fear on the other.\nWhen either sentiment becomes too prevalent, contrarian\nanalysis suggests that the trend is ready for a change. This is\nbased on the view long held by technicians that the majority\nof the investing public is usually wrong just when everything\nseems right. Historical data confirms that it is indeed possible\nto construct parameters that indicate when the crowd has\ngone too far toward one extreme or the other,where condi-\ntions are thus ripe for a reversal.\u003cbr\u003e\u003cbr\u003eMarket professionals and insiders, therefore, often attempt\nto trade crowd psychology in the opposite direction, often\nreferred to as contrarian technical analysis. Indeed, put\/call\nratios have been, and remain, very effective contrarian sen-\ntiment tools, particularly since the public's speculative use of\noptions has exploded with the online investing revolution.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133908021617,"sku":"\\V18\\C08\\073PUT.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_5dfb3d32-f075-4b99-8718-14c83107fe57.jpg?v=1739656499","url":"https:\/\/shop.traders.com\/products\/v15663aputra","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}