Question 100—Trading the Short Interest Ratio
Tracking the Short Interest Ratio can help a trader in all of the following ways, except:
1. A rising Short Interest Ratio confirms a downtrend.
2. A Short Interest Ratio over 20% warns that the stock is liable to have a sharp rally.
3. A Short Interest Ratio under 10% means that shorting is relatively safe.
4. A falling Short Interest Ratio calls for a break in the stock.
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