What is Short Pressure Rating?

A short-term signal that rates a stock or ETF by how much short sellers are actively attempting to push down its price. If short sellers are spending a lot of resources to push down the price of the stock and the price of the stock is still going up, that exponentially increases the Short Pressure Rating. 

How to use Short Pressure Rating?

Short Pressure Rating ranges from 0 to 100 and can be examined for a particular stock or for an aggregation of stocks such as ETFs.

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A High Short Pressure Rating (80+) for a stock means the stock has heavy demand for shorts and/or the price and/or the number of shares traded are increasing, perhaps rapidly. 

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A Low Short Pressure Rating (20 or less) for a stock means the stock has minimal demand for shorts, and/or the price/number of shares traded is decreasing. 

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The price of a stock with a high Short Pressure Rating is likely to be less stable and more volatile, than the price of a stock with a lower Short Pressure Rating.

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Update Frequency and Usage for Short Pressure

Short Pressure Rating updates at least 4 times during market hours (Monday - Friday, 9:30 am - 4:00 pm Eastern Time). Because of this, you can generally count on it to include timely information to trade on. Big moves in the Short Pressure Rating could certainly mean the stock is about to swing in one direction or the other, so it is important to check the Short Pressure Rating before you make any short-term trades.