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HomeStocksWhat are the Main Indicators of Trading Volume in the Stock Market?

What are the Main Indicators of Trading Volume in the Stock Market?

There are four main indicators that reflect the trading volume : the number of shares traded, the trading value, the volume ratio, and the turnover rate .

1. Number of shares traded

It mainly gives investors an intuitive impression from the shape, and its conventional technical means are heavy volume , shrinking volume, divergence and so on. The so-called knowledge of volume and price coordination, such as volume and price rise is benign, heavy volume stagnation is dangerous.

2. Transaction Amount

For Zhuang stocks whose prices fluctuate greatly, using this indicator is far more clear and clear than analyzing the number of traded shares or the turnover rate.

3. Quantity ratio

The volume ratio is a horizontal comparison indicator, which reflects the activity level of the real-time transaction volume of the day compared to the transaction in the past period of time. For example, it is two o’clock in the afternoon, and the volume ratio is 3, which means that the current transaction is three times the transaction in the same period of time in the past.

4. Turnover rate

Many analysts use the turnover rate to count the main positions. Conventional Zhuang stocks (non- index stocks ), generally 200% of the 60-day change in hands, means that the main force is obviously involved or out. Generally, the single-day hand-changing technique is not as effective as the quantity ratio. The daily turnover of less than 3% belongs to the trend of the day in the deserted stage, and the turnover of more than 3% indicates that the market attention has increased significantly, and it may be a hot sector. If the position greater than 7% is at a high technical level, be careful that the main force flees in chaos.