THE HAnDbook of TEcHnIcAl AnAlysIs
fIgure 23.7 20‐Day Rolling Linear Regression Slope of the CBOE Options Total
Put‐Call Ratio Signaling Potential Market Bottoms.
Courtesy of Stockcharts.com
conviction of the participants as a whole about a certain market environment. In
addition, pending orders reveal potential levels of support and resistance in the
market, or the depth of the market.
The downside of using such information is that pending orders may be re-
moved with the click of a button or placed there to fool the under-informed into
believing that the market has genuine supply and demand above and below its
current price.
23.4 Assessing Participants’ Opinions
Market sentiment may also be ascertained by polls, questionnaires, and interviews
with both the well-informed and the under-informed. Here are but a few examples
of such sentiment indicators.
Consumer Confidence Index
The Consumer Confidence Index, or CCI, is compiled from opinions based on
questionnaires asked of 5,000 households inquiring about the state of the current
