Its calculation formula is: volume ratio = total volume/[(average volume per minute in recent five trading days) × cumulative opening time of the day (minutes)],
The simplified formula is: volume ratio = current total number of transactions/(average volume per minute in the past five days × cumulative opening time of the day (minutes)).
Principle and application of ratio and ratio index curve;
1, the ratio reflects the change of the real-time transaction volume on the time-sharing line relative to the average transaction volume in the recent period, and generally defaults to the ratio of the average transaction volume per minute of the day to the average transaction volume per minute of the last five days. Obviously, the volume ratio is greater than 1, which indicates that the on-site trading is active at present, and the volume has increased compared with the previous days.
2. Use a coordinate to describe different ratios per minute on the same day to form a ratio index. Through the ratio index, we can know how the ratio of the day changes, and at the same time we can know the change of the trading volume of the day, and then we can know the change of the trading volume of the day relative to the recent period.
Generally, it should be noted that after a night's rest, when a new trading day opens, the change of stock price and opening volume is very different. Reflected in the ratio, it is very unstable at the opening of the new trading day, and it is necessary to wait until the ratio index stabilizes before acting.
4. In use, when the equivalence ratio index runs unilaterally along a general trend on the time-sharing chart, the equivalence ratio suddenly shows signs of rising rapidly. We don't think it is necessary to act in a hurry, because it is only a possibility to change the original single trend. We can flatten the equivalence ratio curve again after obvious inversion, and then take action according to the further changes of the quantity and price after further correction. Finally, morphological theory can be combined in the usual use, which will often achieve better results.
Novices can buy some books to read when I start studying, and then combine them with simulated stock trading. The Niugubao I was able to use at that time was comprehensive in knowledge and multi-functional, enough to analyze the market and individual stocks. It is helpful to study. I hope I can help you and wish you a smooth investment!