Relative Volume: formula and how to read it

The latest day's trading volume compared with the recent average. The latest day's volume divided by the average volume of the 20 days before it. 2.00x means twice as many shares changed hands as usual.

Stock Meadow groups it under Price trend, and shows it in tables as Rel. volume.

Relative volume = latest day's volume ÷ average daily volume of the 20 days before it

A stock that usually trades 2 million shares a day and traded 5 million on the latest day has a relative volume of 2.50×. The numbers are made up for illustration.

1.00× is a normal day, 2.00× is twice normal and 0.50× half. It describes activity, not direction, so it is a filter only.

It can be used as a filter and as a column, but not for scoring: it describes a company rather than making it better or worse.

• Heavy volume can accompany a rise or a fall, so on its own it says nothing about direction.
• Quarterly index rebalancing and options expiry days inflate volume for many stocks at once.
• Blank if volume data is missing; it needs 21 trading days of prices.

How Stock Meadow handles gaps. Usually blank when volume figures are missing, or there are fewer than 21 days of prices.

Treat any single metric as one clue, and read the company's financial statements before drawing a conclusion. Stock Meadow's figures are research tools based on reported data, not investment advice.

No scoring model uses it. It is a filter and a table column only.

Read about every scoring model in How scores work.

• On-Balance Volume Trend: whether volume has flowed in on up days or out on down days.
• Chaikin Money Flow: whether days tend to close near their highs or their lows, weighted by volume.
• Average True Range (ATR %): how far the price typically moves in a day, as a share of the price.

What is a high relative volume?

Many traders watch for readings of 2× or more, meaning twice the usual volume, because they suggest news or a change in interest. There is no official threshold.

Can I score stocks on Rel. volume?

It can be used as a filter and as a column, but not for scoring: it describes a company rather than making it better or worse.

Why is Rel. volume blank for some stocks?

It is usually blank when volume figures are missing, or there are fewer than 21 days of prices. Stock Meadow leaves the figure blank rather than guessing it.