Volume Ratio Indicator Captures Bull (Trading Skills 100 Lectures / Article 11)

(Yangtze River Suggestion: Like, Share, Bookmark)
1. When the volume ratio of a coin is less than 1 on a given day, it indicates that the coin has a shrinking volume for that day. If it is greater than 1, it indicates that there is an increase in volume. During daily market analysis, whenever we have time, we should scan all coins with a volume ratio greater than 1; if time is insufficient, we should at least check all coins with a volume ratio greater than 2, as there are many hidden dark horses among them.
2. Why is it important to pay attention to volume ratio? The volume ratio, as the name suggests, is the comparison of the current trading volume with that of the previous period. If it remains stable, then the price will most likely continue to run steadily along the established trend; however, if there is a sudden increase in trading volume, as the saying goes, volume precedes price, a massive trading volume will inevitably lead to significant fluctuations in the coin price.
3. If the price of the coin has fallen significantly, or has been consolidating for a long time, and the trading volume increases on the same day with rising prices, then the possibility of a significant increase at this time is very high; if the previous increase has already been substantial, then a sudden increase in volume at this time is likely to be a signal for a price drop.