RiskPicksWhat is Relative Volume?
Relative volume (RVOL) compares current volume to the average volume at the same time of day. An RVOL of 2.0 means twice the normal volume. It's the single most important filter for day trade scanners.
Why RVOL matters
- Confirms interest: high RVOL means traders are paying attention to this stock today
- Better fills: more volume = tighter spreads and less slippage
- Bigger moves: stocks with high RVOL tend to make larger percentage moves
RVOL thresholds
- Below 1.0: below average, avoid for day trading
- 1.0 - 2.0: normal to slightly elevated
- 2.0 - 5.0: significantly elevated, worth watching
- Above 5.0: extremely unusual activity, something is happening