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Tool Atlasmarket.relative_volume

Tool

Relative Volume

market.relative_volume

MarketVolume

Inputs

No typed inputs.

Outputs

Buffer (time series)

A volume ratio where 1.0 is an average bar. Above 1 means heavier-than-usual volume (the bars highlighted over the baseline); below 1 means lighter-than-usual. Spikes well above 1 often mark breakouts, news or session opens.

Relative Volume (RVOL) compares the current bar's volume to its recent average, as a simple ratio. A value of 1 means an average bar; above 1 means heavier-than-usual trading, below 1 means lighter.

Relative Volume overview diagram

How it works

It averages volume over the period (default 20 bars) and divides the current bar's volume by that average. So 2.0 means twice the usual volume and 0.5 means half. It is used to spot when activity spikes, which often accompanies breakouts and news.

Configuration

periodscalar

How many past bars set the 'normal' volume baseline. Larger = a steadier, slower baseline; smaller = a baseline that adapts faster to recent activity. 20 is the default.

period diagram

Connects to

Feeds into

Examples

  • Filter: only act on a breakout signal when relative volume is above 1.5, so the move has real participation.
  • Skip signals on quiet bars where relative volume is below 1, which often chop and fade.

Common mistakes

  • Comparing raw volume across symbols instead of using this ratio — absolute volume varies wildly between instruments.
  • Ignoring time-of-day: volume is naturally higher at session opens, so a high reading there may just be the normal pattern.

See also