What are the functions of the capacity ratio?

Volume ratio (VR) - also known as volume ratio, is a technical indicator that judges the momentum of market buying and selling by analyzing the ratio of the volume of foreign exchange on the rising day to the volume on the falling day during a certain period of time. It is mainly used for the analysis of individual currencies and is suitable for medium-term observation. Its theoretical basis is "price-volume synchronization" or "volume-before-price", which determines the trend of foreign exchange based on changes in volume, so as to choose the time to buy and sell.

(1) Calculation method:

VR = the total number of transactions on the rising day in N days/the total number of transactions on the falling day in N days.

N - set the parameters, usually 26 days.

(2) Application rules:

(A) to the size of the VR trading timing: 40-70 can be more investment; in 80-150 small fluctuations, you can hold positions; in 160-350 can be positioned squaring; in more than 350 to airdrop.

(B) When the volume of transactions shrinks to amplification, and VR also increases from a low value, it is a buying opportunity.

(C) When the price is low, VR increases and you can consider buying it.

(D) VR is in the safe zone, and when the foreign exchange market is bullish, the position can be held without selling.

(E) VR is in the profit zone, the exchange rate is rising, VR is increasing, and it can be sold at a high level.