Relative volume (RVOL) analysis is a game-changer for traders seeking to gauge market participation and conviction. By measuring current volume against historical averages, these tools provide critical context for price movements—helping confirm breakouts, identify exhaustion points, and filter low-liquidity noise. This comprehensive guide explores 10 powerful RVOL-based indicators available on TradingView, complete with actionable strategies.
Core Concepts of Relative Volume Trading
What Is Relative Volume?
RVOL calculates the ratio between current volume and its recent average (typically 20-50 periods). For example:
- RVOL 1.5x: Current volume is 50% higher than average
- RVOL 0.8x: Volume is 20% below normal
👉 Discover how top traders leverage RVOL
Why It Matters
- Breakout Validation: Genuine breakouts typically show RVOL >2x
- Trend Strength Assessment: Sustained trends feature higher RVOL in the direction of the trend
- Exhaustion Signals: Extreme spikes (>5x) often precede reversals
Top 10 Relative Volume Indicators
1. Relative Volume (RV-X) - Fully Configurable
Key Features:
- Tiered color-coding (red ≤1x to bright green ≥10x)
- Customizable lookback periods (9-50 days)
- Crossover alerts at user-defined thresholds
Pro Tip: Set alerts at RVOL 2.0x to catch early breakout opportunities.
2. VWAP Adaptive (RelVol-Adjusted)
Innovation: Modifies classic VWAP by weighting volume relative to time-of-day averages.
Ideal For:
- Macroeconomic event trading (CPI/FOMC releases)
- Reducing skew from isolated volume spikes
3. Volume Intelligence Suite (VIS) v2
Three-Part Analysis:
- Dynamic volume zones
- Session-based profiling
- Smart delta highlighting (bullish vs bearish volume)
4. RVOL Effort Matrix
Unique Approach: Combines:
- Relative volume tiers
- Directional effort (buy/sell volume)
- Structural context
Color Guide:
- 🟣 Fuchsia: Institutional-grade volume (>10x)
- 🟢 Green: Healthy continuation (2-5x)
👉 Advanced volume analysis techniques
5. Triple EMA + Volume/Price Signals
Dual-Filter System:
- EMA alignment (9/21/50)
- Volume exceeding absolute + percentage thresholds
Configuration Tips:
- Swing trading: 500k shares + 5% spike
- Scalping: 100k shares + 3% spike
6. Relative Volume at Time (RVOL)
Time-Sensitive Analysis: Compares current volume to historical averages at the same time:
- Detects unusual pre-market activity
- Identifies recurring liquidity patterns
7. Zanger Volume Ratio (ZVR)
Pioneered By: Dan Zanger ($10k→$18M trader)
Dashboard Includes:
- 30-day avg volume baseline
- Breakout volume threshold (default +40%)
8. BuySell% Indicator
Volume Segmentation:
- Buy volume = (Close - Low)/(High - Low) × Volume
- Sell volume = (High - Close)/(High - Low) × Volume
Visual Cues:
- Teal bars: Buying pressure
- Yellow %: Buy volume ratio
9. Proximity Indicator
Multi-Dimensional Analysis:
- 52-week high/low proximity
- MA deviations (10/50/200)
- ADR% volatility
- 3-month low rebounds
10. Effective Volume (ADV) v3
Enhanced Features:
- Volume multiple alerts (default 2x)
- Three aggregation modes (Simple/Smoothed/Cumulative)
- Bullish/bearish volume coloring
FAQ: Relative Volume Strategies
Q: What's the optimal RVOL threshold for breakout trading?
A: Most traders use 2.0-2.5x as minimum confirmation. Pair with:
- Price > key resistance
- Narrowing volatility (e.g., Bollinger Band squeeze)
Q: How does RVOL differ from standard volume indicators?
A: Traditional volume shows raw activity. RVOL answers: "Is this volume high or low relative to expectations?"
Q: Can RVOL predict reversals?
A: Yes. Climactic spikes (>5x) after extended moves often signal exhaustion. Look for:
- Wick rejections at S/R levels
- Divergence with momentum oscillators
Q: What timeframes work best with RVOL?
A: All timeframes apply:
- Day trading: 5m/15m charts with 20-period RVOL
- Swing trading: Daily with 50-period RVOL
Q: How to filter false RVOL signals?
A: Combine with:
- Liquidity zones (Volume Profile)
- Time-of-day analysis (e.g., avoid first 30min spikes)
Key Takeaways
- Context Matters: RVOL transforms raw volume into actionable intelligence
- Thresholds Vary: Adjust parameters per asset class and timeframe
- Combine Signals: RVOL works best with price action confirmation
- Avoid Noise: Use session filters for cleaner analysis
Master these tools to:
- Spot high-probability breakouts
- Gauge institutional participation
- Avoid liquidity traps