Technical Analysis: Upside-Downside Volume Ratio | CFA® Level 1 Exam

Understanding the Upside-Downside Volume Ratio in Technical Analysis

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Technical analysts would feel that an upside-downside volume ratio with a value of 1.7 indicates that the market is

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Explanation

Technical analysts may use the ratio of upside-downside volume as an indicator of short-term momentum for the market. They feel that a ratio value of 1.50 or more indicates that the market is overbought, while a ratio of 0.70 or less indicates that the market is oversold.