Abbreviation: Put/Call Vol Ratio Avg Diff
Category: Option Put / Call
Input Parameters:
| Name | Range | Default |
| Put Volume | ||
| Call Volume | ||
| Avg1 Periods | Int >= 1 | 5 |
| Avg2 Periods | Int >= 1 | 10 |
Calculation:
Avg(X, Avg1 Periods) – Avg(X, Avg2 Periods)
where
X = Put/Call Vol Ratio(Put Volume, Call Volume)
Put/Call Vol Ratio represents Put/Call Volume Ratio
Avg represents Simple Moving Average
Discussion:
This indicator attempts to quantify movements in the Put/Call Volume Ratio indicator by calculating the difference between two moving averages. Since it uses simple moving averages (which give equal importance to all the periods within the moving average’s time frame), the indicator treats all periods alike, and does not focus more upon movement between recent or relatively higher volume periods as do the exponential and volume weighted variants.