PCR Trading Strategy part 1

The Put-Call Ratio (PCR) is a technical indicator used by traders to gauge market sentiment and identify potential trend reversals. It's calculated by dividing the total open interest of put options by the total open interest of call options. A high PCR (above 1) suggests bearish sentiment, while a low PCR (below 1) indicates bullish sentiment. Traders often use PCR as a contrarian indicator, meaning they might look to buy when the PCR is high, anticipating a reversal, or sell when it's low, expecting a downturn.