Definition
Relative Volume compares current trading volume to what's typical for that time period. RVOL of 2.0 means volume is 200% of normal. High RVOL often accompanies significant price moves and can confirm breakouts or signal unusual activity.
Formula
RVOL = Current Volume / Average Volume (same time period)
Example
A stock usually trades 100K shares by 10 AM. Today it traded 300K by 10 AM, giving RVOL of 3.0. This unusual volume suggests significant interest, often preceding a big move.
FAQ
What is Relative Volume (RVOL)?
Current volume compared to the average volume for that time of day.
How do you calculate Relative Volume (RVOL)?
A common formula for Relative Volume (RVOL) is: RVOL = Current Volume / Average Volume (same time period)
Why is Relative Volume (RVOL) important?
Relative Volume (RVOL) helps investors evaluate technical analysis and make more informed decisions.