Another great snippet of information from Garrett Drinon of SMB Capital explaining what the VOLD Ratio is and what he looks for to identify a trending market. In summary, we want the VOLD Ratio to be 3:1 or greater to have a higher probability of a trending day. A ratio of less than 2 may indicate a choppy or sideways market.
TickSurfers $VOLD indicator is set to calculate the ratio by default. You can change this setting to look at the raw readings of $VOLD by changing the mode to candles. Additionally, you can switch between the NYSE or NASDAQ $VOLD index.
NOTE: TickSurfers is not affiliated with SMB Capital and does not earn commissions for promoting this video. For educational purposes only.