The volume ratio indicator is an important indicator that reflects the changes in market volume, and the trend and trading activity of the market can be judged through the volume ratio indicator. Therefore, it is very important for investors to grasp the method of viewing and analyzing the volume ratio indicator.
First of all, to understand the volume ratio metric, you need to know what the volume ratio is. The volume ratio is a measure of relative volume, which reflects the change in volume over a certain period of time relative to the previous trading day. The size of the volume ratio value indicates the increase or decrease of the trading volume, and when the volume ratio value is greater than 1, it indicates the increase in trading volume; When the equivalent ratio value is less than 1, it indicates that the volume decreases.
Next, let's look at how to analyze the volume ratio indicator. First of all, observe the change trend of the volume ratio indicator, if the volume ratio indicator continues to rise for a period of time, it means that the trading volume is gradually increasing and the market activity is increasing, which may be a signal of the best results. If the volume ratio indicator continues to decline for a period of time, indicating a gradual decrease in volume and a decrease in market activity, this could be a signal to sell.
Secondly, it is necessary to analyze the trend of **. If the volume ratio indicator declines, this may indicate that there is a lack of volume support and follow-up momentum. If the volume ratio indicator rises, this may indicate that a large number of sell orders are emerging, and the subsequent trend may continue.
In addition, it is necessary to pay attention to the fluctuation range of the volume ratio indicator. The fluctuation range of the volume ratio indicator is generally between 0 and 1, if the volume ratio indicator has abnormal fluctuations, such as a sudden spike or **, it may indicate that the market has important information or the influence of trading forces, and you need to pay close attention to the subsequent trend.
Finally, it should be analyzed in combination with other technical indicators. Although the volume ratio indicator is one of the important volume indicators, other technical indicators such as MACD, KDJ, etc. can also provide important reference information. By analyzing these technical indicators together, you can more accurately judge the market trend and trading opportunities.
In conclusion, it is very important for investors to grasp the method of viewing and analyzing the volume ratio indicator. By observing the trend of the volume ratio indicator, combining the trend of the market and analyzing it with other technical indicators, you can more accurately judge the market trend and trading opportunities. In the investment process, investors should make rational investment decisions based on their own risk tolerance and investment goals.