Indicator Description

VR (Volume Ratio) is a volume indicator that reflects market activity and trend changes by calculating the ratio of volume changes.

Function Information

• Function Name: VR
• Input Parameters: Close, Volume
• Parameter Settings: timeperiod1 (default: 21), timeperiod2 (default: 8)
• Output: vr, ma

Calculation Principle

VR is calculated using the following formula:

UpVolume = SUM(IF(Close > Close[-1], Volume, 0), timeperiod1)
DownVolume = SUM(IF(Close < Close[-1], Volume, 0), timeperiod1)
VR = (UpVolume + SUM(Volume, timeperiod1) / 2) / (DownVolume + SUM(Volume, timeperiod1) / 2) * 100

Where Close[-1] is the previous closing price.

Usage Scenarios

1. Market activity analysis
2. Trend strength judgment
3. Divergence signal identification
4. Trading signal generation

Usage Recommendations

1. VR turning from negative to positive can be seen as a buy signal
2. VR turning from positive to negative can be seen as a sell signal
3. Use in combination with price trends
4. Pay attention to volume changes