What does a PCR value below 0.5 generally suggest about market sentiment? Option: Extreme bullishness, indicating a potential market downturn., Neutral sentiment, suggesting a period of consolidation., High volatility, implying increased risk for option writers., Extreme bearishness, indicating a potential market upswing.

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What does a PCR value below 0.5 generally suggest about market sentiment?

Extreme bullishness, indicating a potential market downturn.

Neutral sentiment, suggesting a period of consolidation.

High volatility, implying increased risk for option writers.

Extreme bearishness, indicating a potential market upswing.

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How is the PCR typically interpreted in trading?

The PCR is a direct indicator of future market direction.

The PCR is generally used as a contrarian indicator.

A low PCR indicates bearish market sentiment.

A high PCR indicates bullish market sentiment.

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How is the Put Call Ratio (PCR) calculated?

Total traded value of Puts divided by total traded value of Calls.

Total volume of Calls divided by total volume of Puts.

Total open interest of Calls divided by total open interest of Puts.

Total open interest of Puts divided by total open interest of Calls.

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According to the text, when is a stock considered to have a 'bullish outlook' using the CPR indicator?

When the current market price is above the Top Central Pivot (TC) line.

When the CPR range is narrow, indicating low volatility.

When the current market price is below the Bottom Central Pivot (BC) line.

When the CPR range is wide, indicating high volatility.

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What does it signify if the RSI remains in the overbought region for an extended period?

The security is becoming less volatile

The security has strong positive momentum

The security is entering a bear market

The security is likely to experience a downward correction

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What is the profit potential of a Put Ratio Back Spread when the market goes down?

Unlimited

Depends on the strike price

Limited

Fixed