What it does
Raw volume numbers are hard to compare between symbols and times of day. Relative volume (RVOL) solves this by dividing each bar's volume by the average volume of the bars before it. A reading of 1.0 is normal activity, 2.0 is twice the recent average, and 0.5 is half. The histogram is grey for normal bars, orange for unusually high volume and blue for unusually low volume.
How it works
- Volume for each bar is tick volume by default. If real volume is selected and the broker reports zero, tick volume is used for that bar.
- Average = sum of the volume of the previous N bars / N. The current bar is not part of its own average.
- RVOL = current bar volume / average. If the average is zero, RVOL is 0.
- Colour: orange when RVOL is at or above the high level, blue when at or below the low level, grey otherwise.
- Reference lines are drawn at 1.0 and at the high and low levels.
The alert checks the most recently closed bar once per new bar, so it reacts to completed volume rather than a bar that is still building.
How to use it
Unusual volume tells you that something changed: a session opened, news was released, or a level attracted many orders. Some practical uses:
- Breakout confirmation: a break of support or resistance on high RVOL suggests real participation; a break on low RVOL is more suspect.
- Exhaustion: a very high RVOL bar with a long wick after an extended move can mark climactic activity.
- Quiet markets: a run of blue bars shows low participation, which often means smaller ranges and less reliable signals.
Remember that volume follows the clock. The opening of London and New York in the forex sessions naturally lifts RVOL, so compare readings with the time of day in mind.
Settings
| Input | Default | What it changes |
|---|---|---|
| Volume type | Tick volume | Source of the volume |
| Average length | 20 | Longer averages make RVOL steadier |
| High level | 2.0 | Threshold for orange bars and alerts |
| Low level | 0.5 | Threshold for blue bars |
| Popup alert / Push notification | false | Alerts once per bar after a high-RVOL bar closes |
Limitations
- Forex tick volume counts price updates, not traded lots, and varies by broker.
- The live bar's RVOL starts low and grows as the bar fills, so judge it after the close.
- A simple N-bar average does not adjust for normal intraday patterns, so session opens often look unusual.
- High volume shows activity, not direction.