Relative Volume or RVOL is an indicator used to help determine the amount of volume change over a given period of time. It is often used to help traders determine how in-play a ticker is. General rule of thumb is the higher the RVOL, the more in play a stock is. I myself like to use it as a substitute of the volume indicator itself.
Basic Calculation: Relative Volume = Current Volume / Average Volume
Crossover Signals: Any time there is a volume spike which causes a crossover of the user set'Smoothed Moving Average' or 'Threshold' a green/red dot will appear at the top. The color of the dot is dependent on closing of the candle. Therefore it does not necessarily mean price will continue in that direction since volume spikes often happen in peaks or valleys.
Threshold: The level at which custom alerts and signal can be set. The higher the value, the more volume required to trigger.
Built in Alerts: You can set custom alerts for the crossovers of the adjustable threshold, or the average RVOL band.
Nice work man, but I do I have to say that this type of RVOL is not correct. This is more current volume over average volume during the last number of bars. Has nothing to do with being relative to that specific period of time. For example, if you put period of 26, and you are using timeframe of 15min... let's say we want to calculate RVOL for 10:15-10:30am... RVOl will take the volume for that time (10:15-10:30) and compare it to the last 26 days in that specific time of 10:15-10:30. That is what SMB Capital is using and that is the proper way of using RVOL. Hope that explains things a little :)
tradingmago
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@jasminko.dogladovic, Agree. Have you been able to find one for Tradingview?
tradingmago
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@jasminko.dogladovic, omg! Can’t believe this is happening. You don’t know for how long I have been looking for this indicator without having to pay a fortune. Thanks 1000 times!
tradingmago
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@jasminko.dogladovic, cant get it to work. All calculations shows Zero, therefore no color change in the volume bars. Wondering if it only works during market hours
jasminko.dogladovic
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@tradingmago, it works, you have to set up your loopback period to multiple days and set it to stocks when looking at stocks. if you are looking at forex, then set it for forex in the settings
tradingmago
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@jasminko.dogladovic, yeah, its working!! I just realized taht does not work in my timeframe of 10min. So, im using the 15min.
starkingstar21
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@jasminko.dogladovic, brother can i get that indicator