Short interest ratio
The short interest ratio is the number of shares short divided by average daily volume.
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Expanded Definition
Technicians use the short interest ratio as a tool to determine future volatility. A high ratio is considered volatile because it indicates both an extreme bearish sentiment on the stock, as well as the potential for strong future buying pressures as short sellers would cover their short positions in the event of an upside surprise. This occurrence is known as a "short squeeze." A low ratio is neutral.
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