Overview
Relative volume (RVOL) compares how much a stock is trading today versus its normal amount for the same time of day. It turns raw volume into a single, comparable number — and it's how active traders find the handful of stocks "in play" each session.
How it works
Because it's normalised, RVOL is comparable across stocks: a 2-million-share day might be huge for one name and quiet for another, but an RVOL of 3 means "3× normal" for either.
Why it matters
Volume is participation, and participation is what lets a move trend and lets you trade size without slippage. Momentum strategies — Gap-and-Go, breakouts — typically require high RVOL to confirm that a catalyst has drawn a real crowd. Scanners rank by RVOL to surface the day's most active, tradeable names.
Honest assessment
Where RVOL helps
- Scanning for stocks 'in play' today.
- Confirming a breakout has real participation.
- Gauging whether a move can run.
Where it misleads
- Reading high RVOL as automatically bullish.
- Ignoring why volume is elevated.
- Using raw volume across very different stocks.
RVOL is a participation/attention filter, not a direction signal — its job is to find where to look, not which way to trade.
Practice
What does an RVOL of 3 mean?
Today's volume is running 3× the normal amount for this stock at this time of day — unusually high interest, often around news or a catalyst.
Why do momentum traders demand high RVOL?
Volume is the fuel for a move. High RVOL means enough participation for a trend to run and for you to get in and out; low RVOL breakouts tend to fail.
Is high RVOL bullish?
Not by itself — it signals unusual activity, which can drive price up or down. It's a participation filter, not a direction signal.
This concept in the knowledge graph
Resources
- CONCEPTVolume — the foundation RVOL builds on.
- CONCEPTStock selection & scanning — where RVOL earns its keep.
References
- Relative volume & volume analysis — Investopedia.