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Volume & money flow

Relative Volume

Education only · our voice · free public data

Definition

Relative Volume (RVOL) compares current traded volume to the typical volume for the same point in time, expressed as a multiple (e.g. 2.0x = twice normal). It measures how unusual today's participation is.

How to read it

RVOL = 1.0 is average; above ~1.5-2.0 signals elevated interest; below 1.0 signals apathy. It is most meaningful when time-adjusted (compared to the average volume by time-of-day) so an hour-one reading isn't judged against a full day. High RVOL makes technical signals - breakouts, reversals, gaps - more trustworthy because they carry participation; low RVOL warns that a move may be noise likely to fade or reverse.

How practitioners use it

Used as context among multiple indicators — never as a standalone signal to act.

Less common professional uses

Naive (non-time-adjusted) RVOL is misleading intraday because volume is U-shaped across the session; always compare like-for-like time buckets. Scheduled events (earnings, expiry, index rebalance, FOMC) create high RVOL that is mechanical, not informational - context matters before treating high RVOL as conviction. RVOL confirms magnitude of interest but not direction; a huge-volume reversal bar can mean a blow-off top as easily as a launch - pair with price structure and a directional money-flow read.

Sources & provenance

Common intraday/volume-analysis practice

This page is educational content published by Pachira Aquatica Global LLC. It is not investment advice and not a recommendation.

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