Significantness of volume ratio: this indicator reflects the difference between the current transaction intensity and the transaction intensity in the last five days. The greater the difference, the more active the transaction. In a sense, the more it can reflect the characteristics of the main force ready to attack. Therefore, quantitative data can be said to be the translator of handicap language and one of the secret weapons to gain insight into the short-term trend of the main force in ultra-short-term actual combat.
Its formula is described as:
Volume ratio = total volume/(average volume per minute in the past 5 days × cumulative opening time of the day (minutes))
The volume ratio is greater than 1, indicating that the average volume per minute on that day is greater than the average of the past five trading days, and the transaction is enlarged;
The volume ratio is less than 1, indicating that the current transaction is not as good as the average level in the past five days, and the transaction is shrinking.