Upside-Downside Volume Ratio: Definition and Calculation

The Upside-Downside Volume Ratio Explained

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Question

The upside-downside volume ratio is equal to

Answers

A. the total number of share prices on an exchange increasing divided by the number of share prices decreasing. Technical analysts consider ratio values of 2.00 or greater to be indicative of an oversold market.

B. the total volume of shares increasing on an exchange divided by the total volume of shares decreasing. Technical analysts consider ratio values of 1.25 or greater to be bullish.

C. the total volume of shares increasing on an exchange divided by the total volume of shares decreasing. Technical analysts consider ratio values of 0.70 or less to be indicative of an oversold market.

D. the total number of share prices on an exchange increasing divided by the number of share prices decreasing. Technical analysts consider ratio values of 1.25 or greater to be indicative of excessive market speculation.

E. the total number of share prices on an exchange increasing divided by the number of share prices decreasing. Technical analysts consider ratio values of 2.00 or greater to be indicative of excessive market speculation. C

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Explanations

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A. B. C. D. E.

Explanation

Technicians use the upside-downside volume ratio as an indicator of short-term momentum for the market. The ratio typically ranges between 0.50 and 2.00.

Ratio values of 1.25 or greater are viewed as bearish, while values of 0.70 or less are viewed as bullish.

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