> ## Documentation Index
> Fetch the complete documentation index at: https://terminal.incrypto.ru/llms.txt
> Use this file to discover all available pages before exploring further.

# Volume Ratio

> Normalized ratio of buy to sell volume — ranges from -1 to +1.

## Overview

Volume Ratio calculates the normalized difference between buy and sell volume for each bar:

```
Volume Ratio = (buyVolume - sellVolume) / (buyVolume + sellVolume)
```

The result always falls between **-1** (all selling) and **+1** (all buying), making it easy to compare directional pressure across different symbols and timeframes regardless of absolute volume.

## How It Works

Unlike raw delta which can vary wildly in magnitude, Volume Ratio normalizes the buy/sell imbalance into a fixed range. This lets you:

* Compare directional pressure across assets with very different volumes
* Spot extreme imbalances without needing to know typical volume levels
* Use fixed thresholds that work consistently across symbols

A reading of **0** means perfectly balanced buying and selling. Values above **+0.3** indicate meaningful buy dominance; below **-0.3** indicates sell dominance.

## Interpretation

| Range        | Meaning                                          |
| ------------ | ------------------------------------------------ |
| +0.7 to +1.0 | Extreme buy dominance — strong bullish pressure  |
| +0.3 to +0.7 | Moderate buy dominance                           |
| -0.3 to +0.3 | Balanced / neutral zone                          |
| -0.7 to -0.3 | Moderate sell dominance                          |
| -1.0 to -0.7 | Extreme sell dominance — strong bearish pressure |

<Tip>
  Sustained extreme readings (above +0.5 or below -0.5) over multiple bars signal strong directional pressure and often precede continuation moves.
</Tip>

## Settings

| Parameter            | Description                                          | Default   |
| -------------------- | ---------------------------------------------------- | --------- |
| `positiveColor`      | Color for positive (buy-dominant) bars               | `#22c55e` |
| `negativeColor`      | Color for negative (sell-dominant) bars              | `#ef4444` |
| `displayMode`        | Visualization style: `line`, `columns`, or `candles` | `columns` |
| `highlightAnomalies` | Highlight statistically unusual readings             | `true`    |
| `anomalyThreshold`   | Standard deviations for anomaly detection            | `2.5`     |
| `anomalyPeriod`      | Lookback period for anomaly calculation              | `30`      |
| `gradientIntensity`  | Scale bar opacity by value magnitude                 | `true`    |

## Display Modes

* **Columns** — Default histogram view. Bar height and color show direction and magnitude.
* **Line** — Continuous line plot. Useful for spotting trends in the ratio over time.
* **Candles** — OHLC-style rendering of the ratio values within each bar.

## Anomaly Detection

When `highlightAnomalies` is enabled, bars where the Volume Ratio deviates more than `anomalyThreshold` standard deviations from the rolling mean (over `anomalyPeriod` bars) are visually highlighted. These anomalies often correspond to:

* News-driven spikes
* Large institutional orders
* Liquidation cascades

## Gradient Intensity

When `gradientIntensity` is enabled, bar opacity scales with the absolute value of the ratio. Bars near zero appear faded, while extreme readings appear at full opacity — drawing your eye to the most significant imbalances.

<Note>
  Volume Ratio uses market order data (taker buys vs taker sells). It does not account for limit order activity visible in the order book.
</Note>

## Practical Examples

**Trend Confirmation**: During an uptrend, Volume Ratio consistently above +0.3 confirms genuine buying pressure behind the move.

**Divergence**: Price making new highs while Volume Ratio trends lower suggests weakening buy conviction — a potential reversal signal.

**Range Trading**: In a sideways market, Volume Ratio oscillating tightly around zero confirms the lack of directional conviction.

## Related Indicators

* [Trade Count Ratio](/en/indicators/metrics/trade-count-ratio) — Same concept using trade count instead of volume
* [CVD (Cumulative Volume Delta)](/en/indicators/metrics/cvd) — Cumulative version without normalization
* [Whale vs Retail](/en/indicators/metrics/whale-vs-retail) — Volume split by order size