Understand the letter-to-volume ratio stock selection indicator formula to determine market activity and capital flow.

Volume ratio is a commonly used indicator in stock analysis. It refers to the ratio of the average trading volume per minute after today's opening to the average trading volume per minute of the previous five days. It is used to measure the relative level of trading volume.

The volume ratio can be used to help determine the current market activity and capital flow. When the value of the equivalent ratio is relatively large, the current trading volume is higher than the average level of the previous five days, which may mean a drastic change in market sentiment or the intervention of main funds; when the value of the equivalent ratio is relatively small, the current trading volume is higher than the average level of the previous five days. A lower price may mean that market sentiment is cold or that major funds are leaving the market.

Some divisions can be made for the quantity ratio, generally speaking:

If the volume ratio is below 0.5, the land volume and the market are not active, but there may also be hidden opportunities;

Volume ratio 0.8-1.5, normal trading volume;

Volume ratio 1.5-2.5, moderate volume;

The volume ratio is 2.5-5, obviously increasing the volume;

The volume ratio is 5-10 times, and the volume is increased violently;

The quantity ratio is more than 10 times, the quantity is huge, be careful when things go to extremes and things will turn upside down.

1. How to check the volume ratio

1. Handicap check

2. View the time-sharing chart : In the time-sharing chart interface of Tongdaxin, enter "volume ratio" or ".506", double-click the "volume ratio (long-short) indicator" to load the time-sharing chart sub-chart.

If you want to view it on the K-line chart, you need to write the volume ratio indicator yourself.

2. Volume ratio indicator formula (1 minute sub-chart)

Volume ratio calculation formula : Volume ratio = (current trading volume / opening minutes) / average trading volume per minute in the previous 5 days

{Only applicable to 1-minute chart, 1200 1-minute K-lines need to be loaded}

D:=DATE<>REF(DATE,1);{Today’s opening of the first K line (1-minute chart)}

T:=BARSLAST(D);

V1:=SUM(VOL,T+1);{number of minutes since opening}

JL1:=V1/(T+1);{Average trading volume per minute after today’s opening}

V2:=SUM(VOL,T+1201)-SUM(VOL,T+1);{Total trading volume accumulation in the previous 5 days (1-minute chart)}

JL2:=V2/1200;{average trading volume per minute in the previous 5 days}

Volume ratio: IF(PERIOD=0,JL1/JL2,DRAWNULL); {only displayed on the 1-minute chart}

3. Volume ratio indicator formula (daily sub-chart)

There are two situations for volume ratio display. Today's volume ratio LB1 is displayed in real time and is the same as the volume ratio value displayed on the handicap. The calculation is more complicated. If you don’t want to calculate LB1, you can use the real-time market function DYNAINFO(17) to directly call the volume ratio data. The calculation of the volume before today is simpler than that of LB2. The previous trading volume will not change anymore. Just divide the average trading volume of the previous 5 days by the trading volume.

{Applicable to daily lines only}

JL1:=V/FROMOPEN;{Average trading volume per minute after today's opening}

JL2:=REF(MA(V/TOTALFZNUM,5),1);{average trading volume per minute in the previous 5 days}

LB1:=JL1/JL2;

LB2:=V/REF(MA(V,5),1);

LB:=IF(ISLASTBAR,LB1,LB2);

Volume ratio: LB, NODRAW;

Land volume:=LB<0.5;{volume ratio is less than 0.5, land volume}

Normal:=LB>=0.8 AND LB<1.5;{quantity ratio 0.8-1.5, normal quantity}

Moderate:=LB>=1.5 AND LB<2.5;{volume ratio 1.5-2.5, moderate and heavy volume}

Obviously:=LB>=2.5 AND LB<5;{volume and price 2.5-5, obviously large volume}

Violent:=LB>=5 AND LB<10;{volume ratio 5-10, violent volume}

Huge amount:=LB>=10;{The amount ratio is more than 10 times, huge amount}

STICKLINE(C>=O,0,LB,2,1),COLORRED;

STICKLINE(C<O,0,LB,2,0),COLORCYAN;

STICKLINE(land volume,0,LB,2,0),COLORBLUE;{land volume, blue column}

STICKLINE(moderate,0,LB,2,0),COLORYELLOW;{moderate heavy volume, yellow bar}

STICKLINE(obvious,0,LB,2,0),COLORMAGENTA;{obviously heavy volume, magenta bar}

STICKLINE(Severe,0,LB,2,0),COLORRED;{Severe heavy volume red bar}

STICKLINE(HUGE Amount,0,LB,2,0),COLORFF0080;{HUGE Amount, Purple Bar}

DRAWTEXT(obvious,LB*1.1,'obviously heavy volume'),COLORMAGENTA;

DRAWTEXT(violent,LB*1.1,'violent heavy volume'),COLORRED;

DRAWTEXT(huge amount,LB*1.1,'huge amount'),COLORFF0080;

NOTEXT1:1.5,COLORYELLOW;

NOTEXT2:2.5,COLORMAGENTA;

NOTEXT3:5,COLORRED;

4. Volume-ratio stock selection formula

The volume ratio stock selection formula applicable to the daily line is relatively simple. N=1 is the stock selection formula when the volume ratio is greater than 1, and N=2 is the stock selection formula when the volume ratio is greater than 2. The value of N can be adjusted by yourself.

N:=1;

LB:=V/REF(MA(V,5),1);

XG:LB>N;

{Available only for daily lines};

Friendly reminder: This article is only for learning and communicating technical indicator formulas and does not constitute any investment advice. Investment is risky, so be cautious when entering the market.