Volume ratio (VR for short) is a medium-term technical index to grasp the trading kinetic energy of the market by analyzing the ratio of the daily turnover (or volume, the same below) of the stock price to the daily turnover of the stock price. Mainly used for stock analysis. Its theoretical basis is "quantity and price synchronization" and "quantity must come first", and the method of determining low price and high price through the change of trading volume, thus determining trading time.

(1) calculation formula

VR = sum of daily turnover/sum of n daily turnover.

Where: n days is the setting parameter, which is generally set to 26 days.

(2) Application rules:

① When VR falls below 40%, the market can easily form a bottom.

②VR value is generally distributed around 150%, and once it exceeds 250%, the market is prone to bull market.

(3) If VR exceeds 450%, you should have a high level of crisis awareness and always pay attention to the possibility of reversal. You can use it with CR and PSY.

④ It is more reliable to apply VR when looking for the bottom, and it should be used in conjunction with other indicators when confirming the head.