Effective Volume for Amibroker (AFL)
Description: Effective volume (EfVol), defined in this case as the close times the volume, gives us a better idea of the approximate amount of money being exchanged for a given day. If the EfVol is divided by the EfVol of an index that roughly correlates with a given stock, and is divided a long-term moving average of the above ratio, we get a standardized ratio (SR) of EfVol. This standardized ratio gives us a better idea of the relative magnitude the EfVol of a stock moves compared to the market.
An SR of approximately 1 means that the EfVol of a given stock moves approximately the same amount as it usually does compared to the index’s EfVol for that day, whereas a value of 3 would mean that the EfVol of stock was three times higher relative to the index than it normally is.
Submitted by arcadianskies about 1 month ago
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