| The Volume Ratio indicator measures the relationship between buying and selling volume in a market over a specified period. It is calculated by dividing the buying volume by the selling volume(Volume Ratio = Positive volume / Negative volume). The resulting ratio can provide insights into the strength of a trend and potential turning points. Traders can use the Volume Ratio to confirm trend direction and assess the level of buying or selling pressure in the market. A ratio above 1 suggests that buying volume is greater than selling volume, indicating a bullish trend, while a ratio below 1 indicates a bearish trend. |
