Cryptocurrency spot trading skills and market knowledge - What is volume ratio?
When entering the market, new traders often like to compare the stock market with the spot market, and then use this as a trading criterion. In fact, the significance of the spot market in spot trading is not the most important, because the volume changes are not very important during the trading operation. Of course, some indicators are still worth our careful consideration, and they are proposed here to guide everyone in real trading.
1. What is volume ratio?
The volume ratio is an indicator to measure relative trading volume. It is the ratio of the average per minute trading volume after the market opens to the average per minute trading volume in the past 5 trading days. That is: the ratio of the three current transactions/the current cumulative opening time (minutes)/the average minute-by-minute trading volume in the past 5 days can be simplified as: the ratio of the three current transactions/(the average minute-by-minute trading volume in the past 5 days x the cumulative opening time (minutes))
2. The role of volume ratio in actual combat
① If the volume ratio is 50%-100% on the day, it means that the trading volume is at a normal level;
② If the volume ratio is above 150% on the day, it is a moderate increase in volume
③ If the volume ratio is above 300% on the day, it is an obvious increase in volume: If the volume ratio reaches above 500% on the day, it is a violent increase in volume.
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