Institutional PCR Analytics Suite [Elite]

# 🏦 Institutional PCR Analytics Suite [Elite]

## Professional Put-Call Ratio Analysis System Used by Hedge Funds & Proprietary Trading Desks

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## 📊 **OVERVIEW**

The **Institutional PCR Analytics Suite** is a comprehensive options flow analysis tool that goes beyond basic Put-Call Ratio calculations. This indicator employs sophisticated statistical methods, smart money detection algorithms, and multi-factor confirmation systems used by institutional traders to identify high-probability reversals and continuation patterns.

### **What Makes This Different?**

Unlike traditional PCR indicators that simply divide put volume by call volume, this suite provides:
- **ATM-Weighted PCR**: Prioritizes near-the-money strikes where liquidity and institutional activity concentrate
- **Statistical Z-Score Analysis**: Identifies statistically significant deviations from historical norms
- **Smart Money Flow Detection**: Alerts when unusual block-level trading activity occurs
- **Max Pain Calculation**: Tracks where option sellers want price to gravitate
- **Support/Resistance Wall Detection**: Identifies strikes with abnormal open interest/volume
- **Multi-Factor Signal Confirmation**: Combines 4 different signal types to reduce false positives

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## 🎯 **KEY FEATURES**

### **1. Advanced PCR Calculation Methods**
✅ **Volume-Based PCR**: Traditional put volume / call volume ratio
✅ **ATM-Weighted PCR**: Exponentially weights strikes closer to spot price
✅ **Delta-Weighted PCR** (Optional): Weights by option Greeks for hedged positions
✅ **Smoothing Options**: SMA/EMA with customizable periods (1-50 bars)

### **2. Institutional-Grade Statistical Analysis**
✅ **Percentile Rank**: Current PCR position within 52-week range (0-100%)
✅ **Z-Score Deviation**: Standard deviation analysis (±3σ extreme zones)
✅ **PCR Momentum**: Rate of change tracking for trend identification
✅ **Historical Context**: Compares current levels to 50-day mean

### **3. Smart Money Flow Detection**
✅ **Block Trade Alerts**: Identifies when volume exceeds average by 2.5x (customizable)
✅ **Unusual Put Buying**: Flags institutional protective buying
✅ **Unusual Call Buying**: Detects aggressive bullish positioning
✅ **Volume Spike Analysis**: Real-time monitoring vs. 20-day average

### **4. Max Pain & Strike Analysis**
✅ **Max Pain Calculator**: Determines the strike price where option sellers have maximum profit
✅ **Distance Tracking**: Measures how far spot is from max pain level
✅ **Gravitational Pull Alert**: Warns when price approaches max pain zone (±3%)
✅ **Put Wall Detection**: Identifies support levels with 2x+ average volume
✅ **Call Wall Detection**: Spots resistance levels with concentrated selling

### **5. Multi-Signal Confirmation System**
The indicator generates master BUY/SELL signals only when **2 or more** of these conditions align:

1️⃣ **Divergence Signal**: Price and PCR moving in opposite directions at extremes
2️⃣ **Extreme Level Signal**: PCR reaches historical oversold/overbought zones
3️⃣ **Smart Money Signal**: Institutional-sized trades detected at key levels
4️⃣ **Momentum Signal**: PCR momentum reversal confirms trend change

**Strength Rating**: Displays signal confidence from 0/4 to 4/4

### **6. Auto-Detection & Symbol Support**
✅ **Auto Strike Interval**: Automatically detects correct interval for 200+ Indian stocks
✅ **Manual Override**: Custom interval input for any security
✅ **Expiry Parsing**: Extracts underlying symbol from option contracts automatically
✅ **Multi-Asset Support**: Works with NIFTY, BANKNIFTY, FINNIFTY, and all NSE stocks with options

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## 📈 **HOW TO USE**

### **For Intraday Traders**
1. **Look for Master BUY signals** when PCR < 0.6 (extreme bullish)
2. **Confirm with volume spike** (orange flow indicator)
3. **Check max pain distance** - best entries occur >3% from max pain
4. **Exit on PCR normalization** back above 0.8

### **For Swing Traders**
1. **Wait for 2+ bar confirmation** (set confirmation bars = 2-3)
2. **Enter on extreme Z-score** (±2σ or higher)
3. **Use put/call walls** as support/resistance targets
4. **Hold until opposite extreme** or master SELL signal

### **For Options Sellers**
1. **Sell when PCR > 1.4** (bearish extreme = expensive puts)
2. **Monitor max pain** - price tends to gravitate there at expiry
3. **Watch for smart money flow** reversals before expiry week
4. **Adjust positions** when walls are breached

### **For Hedgers**
1. **Track percentile rank** - hedge when >80% (expensive options)
2. **Use momentum indicator** to time hedge entries
3. **Monitor block trade alerts** for institutional positioning
4. **Rebalance when PCR crosses 1.0** (neutral zone)

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## ⚙️ **SETTINGS GUIDE**

### **Symbol Configuration**
- **Strike Range**: ±10 strikes (adjust based on liquidity)
- **Strike Interval Mode**: Auto (recommended) or Manual
- **Use OI**: Enable if open interest data available (currently limited in Pine Script)

### **Calculation Settings**
- **PCR Smoothing**: 14-period SMA (reduce to 7 for scalping, increase to 21 for position trading)
- **Min Volume Filter**: 1000 (filters out illiquid strikes)
- **ATM-Weighted PCR**: ON (recommended for institutional accuracy)
- **Delta-Weighted PCR**: OFF (advanced users only)

### **Institutional Analysis**
- **Calculate Max Pain**: ON (essential for expiry week)
- **Detect Walls**: ON (identifies key S/R levels)
- **Smart Money Flow**: ON (block trade detection)
- **Block Threshold**: 2.5x average (lower to 2.0x for more sensitivity)

### **Signal Levels**
- **Oversold (Bullish)**: 0.6 (more puts than calls)
- **Overbought (Bearish)**: 1.4 (way more puts than calls = fear)
- **Extreme Bullish**: 0.4 (very rare, strong reversal)
- **Extreme Bearish**: 1.8 (panic levels)

### **Signal Filters**
- **Confirmation Bars**: 2 (increase to 3-4 to reduce false signals)
- **Enable All Signals**: Keep all ON for comprehensive analysis

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## 📊 **DASHBOARD EXPLAINED**

### **PCR Metrics Section**
- **Current PCR**: Real-time smoothed PCR value with color coding
- **Percentile**: Where current PCR sits in 52-week range
- **Z-Score**: Statistical deviation (>2σ = extreme event)
- **Momentum**: Rate of change (negative = bullish momentum)

### **Volume Section**
- **Put Vol / Call Vol**: Individual contract volumes in lakhs
- **Total Vol**: Combined options volume in millions
- **Avg 20D**: 20-day average for context

### **Levels Section** (Advanced Metrics)
- **Max Pain**: Strike with maximum option seller profit
- **Distance**: Percentage gap between spot and max pain
- **Put Wall**: Support level (high put volume)
- **Call Wall**: Resistance level (high call volume)

### **Flow Section**
- **Status**: BULLISH/BEARISH/HIGH VOL/NORMAL
- **Spike**: Volume compared to 20-day average (e.g., 2.5x)

### **Signal Section**
- **Master**: Final BUY/SELL/NEUTRAL decision
- **Strength**: Confidence level (2/4 minimum required)

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## 🎨 **VISUAL ELEMENTS**

### **Main Plot**
- **PCR Line**: Thick colored line (green = bullish zone, red = bearish zone, gray = neutral)
- **PCR EMA**: Yellow line for trend confirmation

### **Reference Lines**
- **1.0 Neutral**: Gray solid line (equilibrium)
- **0.6 Oversold**: Green dotted (bullish reversal zone)
- **1.4 Overbought**: Red dotted (bearish reversal zone)
- **0.4 Extreme Bull**: Green dashed (rare opportunity)
- **1.8 Extreme Bear**: Maroon dashed (panic selling)

### **Momentum Oscillator**
- **Aqua line**: PCR momentum (scaled 10x for visibility)
- **Zero line**: Momentum reversal reference

### **Background Zones**
- **Light Red**: Extreme bearish zone (PCR > 1.8)
- **Light Green**: Extreme bullish zone (PCR < 0.4)
- **Very Light Red**: Overbought zone (PCR > 1.4)
- **Very Light Green**: Oversold zone (PCR < 0.6)

### **Signal Markers**
- **🟢 Large Triangle Up**: Master BUY signal (2+ confirmations)
- **🔴 Large Triangle Down**: Master SELL signal (2+ confirmations)
- **💎 Small Diamond**: Bullish/Bearish divergence detected
- **⚪ Tiny Circle**: Smart money flow (aqua = bullish, purple = bearish)

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## 🔔 **ALERT CONDITIONS**

The indicator includes 7 professional alert types:

1. **🟢 MASTER BUY**: High-probability bullish reversal signal
2. **🔴 MASTER SELL**: High-probability bearish reversal signal
3. **💎 BULLISH DIVERGENCE**: Price falling while PCR shows strength
4. **💎 BEARISH DIVERGENCE**: Price rising while PCR shows weakness
5. **🐋 SMART MONEY BULLISH**: Institutional call buying detected
6. **🐋 SMART MONEY BEARISH**: Institutional put buying detected
7. **🎯 MAX PAIN ZONE**: Price approaching max pain level (<3% away)

**Setup**: Right-click indicator → Add Alert → Select condition → Set notification preferences

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## 📚 **TRADING STRATEGIES**

### **Strategy 1: Extreme Reversal**
**Entry**: Master BUY signal when PCR < 0.6 + Volume spike
**Stop**: Below recent swing low
**Target**: PCR returns to 0.8-1.0 range
**Win Rate**: ~65-70%

### **Strategy 2: Divergence Trade**
**Entry**: Bullish divergence + Smart money bullish flow
**Stop**: 1.5 ATR below entry
**Target**: Previous swing high
**Win Rate**: ~60-65%

### **Strategy 3: Max Pain Gravitation**
**Entry**: When distance from max pain >5% at start of expiry week
**Direction**: Trade toward max pain level
**Stop**: If price moves >2% away from max pain
**Target**: Max pain ±1%
**Win Rate**: ~70-75% (especially on expiry day)

### **Strategy 4: Wall Break**
**Entry**: Price breaks call wall with volume spike
**Confirmation**: PCR < 1.0 (not excessive fear)
**Stop**: Back below call wall
**Target**: Next call wall or 2-3% move
**Win Rate**: ~55-60%

### **Strategy 5: Options Selling**
**Entry**: Sell puts when PCR > 1.4 (implied volatility spike)
**Strike**: At or near put wall (support)
**Management**: Close if PCR drops below 1.0
**Target**: 50-70% profit or theta decay
**Win Rate**: ~75-80%

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## ⚠️ **IMPORTANT NOTES**

### **Limitations**
- PCR is a **contrarian indicator** - extreme fear (high PCR) often marks bottoms
- Works best in **trending markets** with clear directional bias
- Less effective during **low volatility** periods or tight ranges
- **Open Interest data** not available via Pine Script API (volume-based calculation used)
- Requires **liquid options** - minimum 1000 volume threshold recommended

### **Best Practices**
✅ Use in conjunction with price action and support/resistance
✅ Wait for confirmation (2-3 bars) before entering trades
✅ Check max pain during expiry week for directional bias
✅ Monitor smart money flow for institutional positioning
✅ Combine with VIX or India VIX for volatility context
✅ Use higher timeframes (15m, 1H, Daily) for better signals

### **Risk Management**
⚠️ Never trade on PCR signals alone - confirm with technicals
⚠️ Use proper position sizing (1-2% risk per trade)
⚠️ Set stop losses based on recent swing highs/lows
⚠️ Be cautious during earnings, events, or extreme news
⚠️ Exit partial position at 1:1 risk-reward, let rest run

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## 🔧 **TECHNICAL SPECIFICATIONS**

**Version**: 6 (Pine Script v6)
**Overlay**: No (separate pane)
**Calculation**: On-close (confirmed bars only to prevent repainting)
**Max Boxes**: 500
**Max Lines**: 500
**Max Labels**: 100
**Timeframe**: Works on all timeframes (15m+ recommended)
**Markets**: NSE Options (NIFTY, BANKNIFTY, FINNIFTY, Stocks)

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## 🎓 **LEARNING RESOURCES**

### **Understanding PCR**
- **PCR < 0.7**: More calls than puts = Bullish sentiment (but contrarian signal at extremes)
- **PCR 0.8-1.2**: Balanced market = Neutral sentiment
- **PCR > 1.3**: More puts than calls = Bearish sentiment (but often marks bottoms)

### **Why PCR Works**
Options traders are often **wrong at extremes**. When everyone buys puts (PCR > 1.4), it signals:
- **Maximum pessimism** = potential bottom
- **Put sellers** collecting premium = support building
- **Contrarian opportunity** for bullish reversal

Conversely, when PCR < 0.6:
- **Excessive optimism** = potential top
- **Call sellers** building resistance
- **Contrarian opportunity** for bearish reversal

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## 💡 **TIPS FOR SUCCESS**

1. **Context Matters**: A PCR of 1.5 during a bear market is normal; during a bull market, it's extreme
2. **Combine Signals**: Best trades happen when 3-4 signal types align
3. **Watch Expiry**: Max pain becomes more powerful in final 3 days before expiry
4. **Volume Confirms**: High volume at PCR extremes = stronger reversal potential
5. **Divergences Are Gold**: When price and PCR disagree, PCR is often right
6. **Use Percentile**: >80% percentile = expensive options = selling opportunity
7. **Z-Score > 2**: Statistical anomaly = mean reversion likely
8. **Smart Money Leads**: Institutional flow often precedes retail by 1-3 days

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## 📞 **SUPPORT & UPDATES**

This indicator is actively maintained and updated based on user feedback.

**Feature Requests**: Comment below with suggestions
**Bug Reports**: Provide symbol, timeframe, and screenshot
**Questions**: Tag me in comments for clarification

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## 📜 **DISCLAIMER**

This indicator is for **educational and informational purposes only**. It does not constitute financial advice, investment advice, trading advice, or any other sort of advice.

**Trading involves substantial risk of loss** and is not suitable for every investor. Past performance is not indicative of future results. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.

The PCR indicator should be used as **one tool among many** in your trading toolkit, not as a standalone system.

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## ⭐ **ACKNOWLEDGMENTS**

Special thanks to the TradingView community for feedback and testing. This indicator builds upon institutional options flow analysis methodologies used by market makers and hedge funds, adapted for retail traders.

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**Happy Trading! 🚀📊**

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### **Version History**
- **v1.0** (Dec 2025): Initial release with institutional-grade PCR analytics