As the diversity of information available for investing increases, as a wise investor, it is imperative that we understand and utilize the various tools that help us shape our investment decisions. Among the many complex investment tools, there is one indicator, which is concise and easy to understand, but has a profound meaning - the volume ratio.
The volume ratio is not complicated, the denominator is the volume of transactions in a certain period of time (e.g. now to midday), and the numerator is the average volume of the same period in the past. Although simple to define, it provides a deep insight into the activity and heat of the market.
Any. 
A volume ratio greater than 1 indicates that its current trading volume is greater than the average trading volume in the past, which means that the ** attention has increased, or it may be the intervention of large funds. However, a volume ratio of less than 1 suggests that the enthusiasm for holding shares may be decreasing. This may have an absolute impact on your next investment decision.
However, it is not enough to interpret the volume ratio, the key is how to use this indicator. Seeing a significant increase in volume could mean a significant inflow of money into the market, which could be related to news events, earnings reports, or potential market corrections. This can be a potential investment opportunity under a multi-indicator complex**. But of course, like other investment strategies, we can't rely on it completely, we need to combine the volume ratio indicator with the trend, chart, MACD and other indicators for reference.
The charm of the volume ratio indicator lies in its simplicity and practicality, whether you are an experienced investor or a beginner, the volume ratio indicator can be an important tool in your investment toolbox.
But you may ask, is the quantity ratio really that important and useful as an indicator that relies on a single factor? Are there other information, such as market sentiment, macroeconomic conditions, changes in company fundamentals, etc., that may be more meaningful than the volume ratio?
This is a debatable question. How do you use volume ratios in your investment journey? Have you found which financial instruments better capture the dynamics of the market? How important do you think the volume ratio is when deciding whether to sell or sell?
Looking forward to your messages and discussions, let's share and learn together.