You can gain an edge by paying attention to put call ratios.
Sentiment is an important driver of the markets. Put call ratios are an important part of the sentiment.
Put call ratios are especially important when significant events are occurring such as the Russian attack on Ukraine or the Fed raising rates.
Many services and a television channel heavily promote trades based on unusual activity. The podcast shows you why this way of trading does not produce gains over a large number of trades over a long period of time.
Look for selling opportunities when the total put call ratio is less than 0.8.
Look for buying opportunities when the put call ratio is above 1.1.
Strong signals occur when the put call ratio is around 2.0 for buy signals and around 0.5 for sell signals.
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