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Using put and call volume from all market participants (Customers, Firms and Market makers), this trading indicator calculates the put/call ratio of each individual U.S. Stock.
Individual Stocks Put and Call Volume downloader gets U.S. options put and call volume from the Options Clearing Corporation website. You should install and execute this downloader before using the current put/call ratio function. Once the put and call volume data for optionable U.S. stocks is downloaded, you can start plotting the put/call ratio on charts and create trading rules based on this measure.
This put call ratio indicator (PutCallRatio) divides the total put transactions volume by the total call transactions volume. It is a parameterless function.
The options call volume is obtained from the "call_total" field of the "putcall_volume" database while the options put volume is obtained from the "put_total" field of the same database. This database is created and filled by the above downloader.
Here is a chart of the put call ratio of Google for one year:
The blue line is the smoothed time-series of the put/call ratio line (yellow). It was smoothed using a 10-bar simple moving average.
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.