VOL
Current parameter: VOL(5,10,20)
Indicator Features
• Unify the basis of market volume and energy, and can compare markets horizontally
• Scouting scales in time
• Able to observe the obvious volume energy head, and provide volume energy indicators for everyone to sell at the highest point
What is VOL
The VOL indicator is also known as the moving average line and the mean line. It is a technical indicator that reflects the average transaction situation of the market within a certain period of time, that is, the trading trend;
VOL trading volume is composed of trading volume columns and three simple average lines. It is the most commonly used and simplest indicator among trading volume indicators; the height of the columns indicates the total volume of transactions on that day. The three simple average lines represent the average trading volume of 5 days, 10 days, and 20 days, and the volume bars are represented by red and green bars.
Algorithm
VOL is a reflection of the actual trading volume of the day.
Formula
The formula can be expressed as:
VOL=∑nVi/N
Among them, i=1,2,3,...,n;
N = selected time parameter, such as 10 or 30;
Vi:i daily trading volume
Usage of VOL
Golden fork
When the short-term average line breaks through the long-term average line to form a golden cross, once the golden cross appears, it will confirm that the stock price has turned to rise.
Dead fork
When the short-term average line breaks below the long-term average line, a dead cross is formed. Once a dead cross appears, it will confirm that the stock price has turned down.
VOL trading opportunity
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