Relativevolume
RVOL - R4RocketRelative volume or RVOL for short is an indicator that is used to measure how 'In Play' the stock is. Simply put, it helps to quantify how interested everybody is in the given stock - higher the value, higher the interest and hence higher is the probability for movement in the stock.
I have tried to create RVOL (Relative Volume ) Indicator as per the description that I read on SMB Capital blog. The blog is a great resource.
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How to use the indicator - The indicator is meant for INTRADAY ONLY.
The indicator has following inputs -
1. RVOL Period - Value from 3 to 14 (Default Value = 4)
This is used to calculate the average volume over the given period of days. e.g. average volume for the last 5 days, last 3 days, last 10 days etc. NOTE - If you use higher RVOL Period on smaller timeframes, the code will give an error. So I recommend using 4 or lower for 5 min timeframe. (Nothing will work on 1 min chart and you can experiment for other timeframes.)
2. RVOL Sectional - True / False (Default Value = False)
If you check this box then you will be able to calculate the RVOL for a particular session (or between particular sessions) in that trading day.
What do I mean by session?
Well I have divided the trading day into 6 (almost) equally spaced sessions in time, i.e. 6 hours and 15 mins (for NSE - India) of trading day is divided into 1 hr - 1st session, 1 hr - 2nd session, 1 hr - 3rd session, 1 hr - 4th session, 1 hr - 5th session, 1 hr and 15 min - 6th session.
Before using 3rd and 4th inputs of indicator, RVOL Sectional box MUST BE CHECKED FIRST.
3. RVOL From Session - 1 to 6 (Default Value = 1)
4. RVOL To Session - 1 to 6 (Default Value = 2)
Now if you select 2 in "RVOL From Session" input and 3 in "RVOL To Session" input, the indicator will calculate RVOL for the 2nd and 3rd hour of the trading day. If you select 3 in both the inputs, then the indicator will give RVOL for the 3rd hour of the trading day.
5. RVOL Trigger - 0.2 to 10 (Default Value = 2)
Filter to find days having RVOL above that value. The indicator turns green (or colour of your choice) when RVOL is more than "RVOL Trigger".
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Hope this indicator will add some value in your trading endeavor.
“Only The Game, Can Teach You The Game” – Jesse Livermore
Yours sincerely,
R4Rocket
**If you have some awesome idea for improvement of the indicator - request you to update the code and share the same.
Volume, Relative Volume HighlightThe indicator plots regular volume bars.
The highlight is given by the current cumulative volume for the day, compared to a custom average (standard 20 periods). The stronger the color, the higher the relative volume is. Stocks moving of higher relative volume have higher chances of making predictable moves.
Relative Volume (RVOL) - Beasley SavageRelative Volume, often times called RVOL, is an indicator that tells traders how current volume is compared to past trading volumes over a given period. It is kind of a like a radar for how “in-play” a stock is. The higher the relative volume is the more in play it is.
Relative Volume is displayed as a ratio. So if it is showing 3.5 relative volume, that means it is trading at 3.5 times its normal volume.
