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Registered User
Joined: 10/7/2004
Posts: 38
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The definition for this criteria states "short interest shares divided by average daily volume..."
How long a time period is used to calculate the average?
I called Worden Tech. They told me the latest short interest ratio is available as End Of Day Data. And told me that the ratio was today's short interest shares divided by the short interest shares on the day one month ago.
I guess they based their confusing interpretation on the last sentence "Latest month as reported by the Exchanges".
What does this mean? Please clarify all this confusion!!
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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They were confused.
The definition:
The short interest shares divided by average daily volume, representing the number of days of average trading needed to cover the shorts.
It takes the total number of shares currently shorted and divides by the average trading volume for the stock. What is returned is the theoretical number of days of trading needed to cover all the shorts.
Example:
Craig Inc
Current # shares in open short positions: 1,000,000
Average trading volume/day: 10,000
Latest Short Interest Ratio: 100
Does that help?
- Craig
Here to Help!
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Registered User
Joined: 10/7/2004
Posts: 38
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Thanks for your response! It helps. But incomplete. I assume "currently" means daily. Thus the total number of shares currently shorted is updated + available
daily as EOD data. And likewise the ratio is recalculated and updated daily. Is this correct?
What is the period TC uses to calculate the "average"?
Please fully explain what the last sentence in the definition means!
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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The definition I gave is from the help file (and is only one sentence). I am not sure what you mean by "the last sentence). I am not sure where you found the Latest Month statement.
This is a considered a fundamental condtion. All fundamentals are updated weekly on Saturdays. It is not recalculated every day.
- Craig
Here to Help!
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Registered User
Joined: 10/7/2004
Posts: 38
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Here is where you will find the confusing last sentence. In Telechart >Help >Online Help Files .Then in the Search field type "Short Interest Ratio".
>Criteria Descriptions.Then scroll down to the definition given.
I find it strange and inconsistent that this is considered a fundamental condition. Share volume has always been an integral + important
technical analysis condition in Telechart. And the number of "short interest shares" are merely another form of volume data.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Ah.
"Short interest shares divided by average daily volume, representing the number of days of average trading needed to cover the shorts. Latest month as reported by the Exchanges."
This means the number of shorts is reported monthly by the exchanges to our vendor. Any criterion we get weekly from Hemscott (one of our data sources) we classify as "fundamental criteria" only meaning it is updated every Saturday with any new numbers available.
- Craig
Here to Help!
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