Volume ratio (VR) – also known as volume ratio, is produced by analyzing a certain period of idle time, foreign exchange trading volume up day down day with the ratio of trading volume to determine the market trading momentum of technical indicators. Is mainly used for the analysis of individual currencies for the medium-term observation. The theoretical basis is the “price of the amount of synchronization” or “volume precedes price” in order to determine the changes in volume of foreign exchange trends, and thus choose the timing trading.
(1) calculated as follows:
VR = N days increased the total daily trading / N days, the total decline in daily trading.
N – set parameters, usually 26 days.
(2) the use of Law:
(a) to set the size of the sale of VR time: In the 40-70 can be multi-cast; in 80-150 when the small fluctuations, you can position; and 160-350 open positions when away from the city; drop when more than 350.
(b) when the trading volume from the shrinking to enlarge, while the VR upward from low-value increases when it is time to buy.
(c) low, when the entire disk, VR increased, could be considered to buy.
(d) VR in the security zone, foreign exchange leather, they can not throw position.
(e) VR in the profit zone, the exchange rate rise, VR is increasing, can be a high shot.
(f) VR at 160-180 after the trading volume will decline, after the easy access to reach the peak period of decline; on the contrary, VR, after less than 40-60, it is easy to bottom bounce.
