The definition and function of 1. ratio index is a technical analysis index, which is used to measure the ratio of the trading volume of stocks or other trading varieties to the average trading volume in a specific period. The ratio index can help investors judge market sentiment and capital flow, thus assisting decision-making.
2. The calculation method of ratio index is relatively simple. Usually, the daily turnover is divided by the average turnover over a period of time to get the ratio. Common time periods can be 5th, 10 or 20th, etc.
3. Interpretation skills of the ratio index When interpreting the ratio index, it is generally believed that when the equivalent ratio is higher than 1, it means that the trading volume is above average and the market is active; When the equivalence ratio is lower than 1, it means that the trading volume is lower than the average level and the market is relatively deserted. You can also make a comprehensive judgment according to the stock price trend. For example, if the trading volume is enlarged but the stock price falls, it may mean selling more.
4. Application strategy of ratio index The ratio index can be used to assist stock selection and timing. A common strategy is to choose stocks with relatively high turnover, because higher turnover may mean that the market is more concerned and has greater rising potential. It can also be combined with other technical indicators or tables to improve the accuracy of judgment.
5. Write the source code of time-sharing graph ratio index. When writing the source code of time-sharing graph ratio index, you can use programming language (such as Python, R, etc. ) According to the calculation formula of the ratio. First of all, it is necessary to obtain the volume data and average volume data of stocks or trading varieties, and then calculate and draw the volume ratio curve. The ratio curve and time-sharing chart can be superimposed on each other to observe the relationship between the ratio change and the stock price trend.
Through the introduction of the above five subheadings, readers can understand the definition, function, calculation method, interpretation skills and application strategy of ratio index. At the same time, you can also learn how to realize the source code of time-sharing graph ratio index with programming language. I hope this article will be helpful to readers when using ratio indicators for technical analysis.