Retail trading behavior is often affected by market sentiment and short-term trends, so this indicator can be used as a reference to measure market sentiment and predict short-term stock price trends. Specifically:

• NRBR is positive and high: It indicates that retail investors have a strong willingness to buy, market sentiment may be optimistic, and stock prices may face upward pressure in the short term. This may be due to retail investors following the trend or being optimistic about the market outlook.

• NRBR is negative and low: It indicates that retail investors have a strong willingness to sell, market sentiment may be pessimistic, and stock prices may face downward pressure in the short term. This may be due to retail investors panic selling or being more concerned about the market outlook.

• NRBR is close to zero: It indicates that retail investors' buying and selling power is basically balanced, market sentiment may be neutral, and short-term stock price trends may be relatively stable. At this time, it is necessary to combine other factors for comprehensive judgment.

It should be noted that retail trading behavior itself is not completely rational and may be affected by factors such as noise trading and herd effect. Therefore, it is necessary to combine other fundamentals, technical factors, and the overall market environment for comprehensive analysis. In addition, the effectiveness of this factor may change with market conditions and over time, requiring regular backtesting and adjustments.