Read the Lines · Volume
Relative Volume & Average Volume,
is today actually unusual?
Average volume summarises a stock’s typical recent activity. Relative volume compares current activity with that baseline. A relative-volume reading above 1 means volume is running above the comparison average; below 1 means it is below.
Quick answer
What does RVOL 2 mean?
It generally means current volume is around twice the comparison baseline being used. That tells you participation is unusually high relative to normal activity. It does not tell you whether that activity is bullish, bearish or sustainable.
Why is average volume more useful than a raw number?
Because companies trade at wildly different scales. One million shares may be a quiet day for one ASX name and an extraordinary event for another. A rolling average gives the current number a relevant local benchmark.
Why can RVOL calculations differ?
Platforms can use different lookback periods, intraday adjustments and definitions. A 20-day comparison is not identical to a 50-day comparison. Always know what baseline your chart or scanner is using.
Context
High relative volume answers one question well.
Is participation unusual? Yes or no. To understand why, you still need price behaviour, company news, liquidity and market context.
Important information: This page provides general educational content about technical analysis. It does not provide financial product advice or recommendations.
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