Volume Relative Strength Index
factor.formula
Calculation formula A (Up Volume):
Calculation formula B (Down volume):
Volume Relative Strength Index (VRSI):
in:
- :
Closing price at time t (closing price of the day)
- :
Closing price at time t-1 (closing price of the previous day)
- :
Trading volume at time t (trading volume for the day)
- :
The rising volume at time t. When the closing price at time t is greater than the closing price at time t-1, A_t is equal to V_t, otherwise it is 0.
- :
The falling volume at time t. When the closing price at time t is less than the closing price at time t-1, B_t is equal to V_t, otherwise it is 0.
- :
Sum the values of X in N time periods from t-N+1 to t
- :
The calculation period is usually set to 20 trading days, representing the medium-term market sentiment.
factor.explanation
The Volume Relative Strength Index (VRSI) measures the power of buyers and sellers in the market by calculating the ratio of the sum of the volume of rising days to the sum of the volume of falling days in N periods. When the VRSI value is high, it means that the market buyer's power is relatively strong, and there may be an overbought signal; when the VRSI value is low, it means that the market seller's power is relatively strong, and there may be an oversold signal. This indicator assumes that volume plays a leading role in price changes, and judges the potential trend of price changes by changes in volume, assisting investors in making mid-term investment decisions. VRSI is mainly used in individual stock analysis. Its theoretical basis is "volume and price synchronization" and "volume must precede price". By analyzing the changes in volume, the strength of price trends can be judged, thereby determining the timing of buying and selling.