Abbreviation: Put/Call OpenInt Ratio ExpAvg Diff
Category: Option Put / Call
Input Parameters:
| Name | Range | Default |
| Put Open Interest | ||
| Call Open Interest | ||
| ExpAvg1 Periods | Int >= 1 | 5 |
| ExpAvg2 Periods | Int >= 1 | 10 |
Calculation:
ExpAvg(X, ExpAvg1 Periods) – ExpAvg(X, ExpAvg2 Periods)
where
X = Put/Call OpenInt Ratio(Put Open Interest, Call Open Interest)
Put/Call OpenInt Ratio represents Put/Call Open Interest Ratio
ExpAvg represents Exponential Moving Average
Discussion:
This indicator attempts to quantify movements in the Put/Call Open Interest Ratio indicator by calculating the difference between two moving averages. Since it uses exponential moving averages (which give more importance to the most recent periods than to less recent periods), the indicator tends to focus more upon movement occurring in the most recent periods.