Abbreviation: Put/Call OpenInt Ratio Avg
Category: Option Put / Call
Input Parameters:
| Name | Range | Default |
| Put Open Interest | ||
| Call Open Interest | ||
| Avg Periods | Int >= 1 | 5 |
Calculation:
Avg(X, Avg Periods)
where
X = Put/Call OpenInt Ratio(Put Open Interest, Call Open Interest)
Put/Call OpenInt Ratio represents Put/Call Open Interest Ratio
Avg represents Simple Moving Average
Discussion:
This indicator attempts to smooth the Put/Call Open Interest Ratio indicator by calculating its moving average. Since it uses a simple moving average (which gives equal importance to all the periods within the moving average’s time frame), this method of smoothing may cause more of a lag time than the exponential variant.