#BTC重返97k The VR indicator, or Trading Volume Variation Rate, is a technical analysis tool that helps understand market buying and selling momentum by analyzing the ratio of trading volume on days when stock prices rise to trading volume on days when stock prices fall. Below are some common usage methods:

Indicator Value Judgment

- VR value between 40 - 70: Indicates that market trading is light, sentiment is low, and both long and short positions are in a state of balance. The market may be in a consolidation phase, and at this time, investors should adopt a wait-and-see attitude.

- VR value between 80 and 150: It is the norm for stock price fluctuations, indicating that the market trading is relatively active, with both bulls and bears being relatively balanced, and the stock price generally remains within a normal fluctuation range.

- VR value between 160 - 350: indicates strong market sentiment, with bullish forces in the lead, and stock prices may be in an upward trend, serving as a buy signal. However, when the VR value is above 300, the market may be overheated, posing a risk of correction.

- VR value above 350: indicates extreme market trading frenzy, excessive consumption of bullish power, stock price may soon reach a peak, which is a sell signal.

Combine stock price trends to determine

- Stock prices are rising, and the VR indicator is also rising: This indicates that market funds are actively buying, driving stock prices up. The upward trend is expected to continue, which is a positive buying signal.

- The stock price has fallen, and the VR indicator is declining simultaneously: this indicates a decrease in market trading enthusiasm, with bearish forces dominating. The stock price may continue to fall, and at this time, buying should be avoided.

- The stock price has risen, but the VR indicator has shown a decline: this forms a top divergence, which means that the rise in stock price lacks effective support from trading volume, indicating insufficient upward momentum, and the stock price may soon reverse and decline, serving as a sell signal.

- Stock prices are falling, but the VR indicator is rising: this creates a bottom divergence, indicating that while stock prices are declining, there is capital quietly accumulating, suggesting that stock prices may soon hit a bottom and rebound, which is a buy signal.

Combine with other indicators for judgment

The VR indicator can be used in conjunction with moving averages, MACD, and other indicators. For example, when the VR indicator issues a buy signal, if the moving average is also in a bullish arrangement or the MACD indicator shows a golden cross and other buy signals at the same time, then the reliability of the buy signal is higher.

The above content is for reference only and does not constitute investment advice. In practical applications, investors need to make comprehensive judgments based on market conditions and personal risk tolerance factors.