Relative Volume RVOL Alerts
Nov 6, 2019
The Relative Volume RVOL Alerts indicator measures volume changes over a specific period to help traders identify how "in-play" a security is by comparing current volume to its historical average.
Usage
The Usage section focuses on identifying volume spikes that may precede or accompany significant price moves. Traders use RVOL to gauge the intensity of market participation.
- Identifying "In-Play" Assets: High RVOL values indicate that a stock or asset is experiencing significantly more interest than usual, often making it more suitable for day trading or momentum strategies.
- Volume Breakouts: Signal dots appear at the top of the indicator pane when the RVOL crosses either a user-defined threshold or a smoothed moving average. A green dot indicates a breakout on a positive candle close, while a red dot indicates a breakout on a negative candle close.
- Trend Confirmation: The indicator can be used as a substitute for standard volume bars to better visualize whether current volume is expanding or contracting relative to the norm.
Details
The script calculates the Relative Volume (RVOL) by dividing the current volume by a Simple Moving Average (SMA) of volume over a lookback period.
- RVOL Calculation:
Relative Volume = Current Volume / Average Volume. - Signal Logic: The indicator monitors crossovers between the raw RVOL and two potential triggers: a smoothed RVOL line (SMA of the RVOL itself) or a static numerical threshold.
- Smoothing: By applying a smoothing value to the RVOL, the tool filters out minor fluctuations, providing a clearer view of the volume trend.
Settings
- Period: The lookback period used to calculate the average volume for the base RVOL calculation.
- Threshold: A static value representing a significant volume level (e.g., 1.75 means 175% of average volume).
- Smoothing Value: The length of the moving average applied to the RVOL for trend analysis and crossover signals.
- Volume Breakout based on: Determines whether the breakout signals (dots) are triggered by crossing the Smoothing Value line or the static Threshold.
FAQ
How do I interpret the colored dots?
The dots represent a volume breakout. A green dot appears if the candle closes higher than it opened during a volume spike, while a red dot appears if it closes lower.
Does high RVOL guarantee price continuation?
No, high RVOL indicates a volume spike, which often occurs at market peaks or valleys. It should be used in conjunction with price action and other technical analysis tools.
How can I access this indicator?
You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.
Trading & investing are risky and many will lose money in connection with trading and investing activities. All content on this site is not intended to, and should not be, construed as financial advice. Decisions to buy, sell, hold or trade in securities, commodities and other investments involve risk and are best made based on the advice of qualified financial professionals. Past performance does not guarantee future results.
Hypothetical or Simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, including, but not limited to, lack of liquidity. Simulated trading programs in general are designed with the benefit of hindsight, and are based on historical information. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.
Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.
As a provider of technical analysis tools and strategies, we do not have access to the personal trading accounts or brokerage statements of our customers. As a result, we have no reason to believe our customers perform better or worse than traders as a whole based on any content, tool, or platform feature we provide.
Charts used on this site are by TradingView in which the majority of our technical indicators are built on. TradingView® is a registered trademark of TradingView, Inc. www.TradingView.com TradingView® has no affiliation with the owner, developer, or provider of the Services described herein.
Market data is provided by CBOE, CME Group, BarChart, Massive, CoinAPI. Select U.S. equities data is provided through Massive. CBOE BZX real-time U.S. equities data is licensed from CBOE and provided through BarChart. Real-time futures data is licensed from CME Group and provided through BarChart. Select cryptocurrency data, including major coins, is provided through CoinAPI. All data is provided “as is” and should be verified independently for trading purposes.
This does not represent our full Disclaimer. Please read our full disclaimer.
© 2026 LuxAlgo Global, LLC.