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Volume ratio

relative volume

Volume of the last completed trading day compared with the average of the 20 days before it. High volume shows that many market participants are behind a move.

In the screenerAbove 1.5× in the direction of the signal earns a bonus point; clearly below-average volume costs one. The last completed candle is used on purpose, because half a trading day would push the ratio down artificially.
For stock tradersVolume confirms moves in shares: a breakout on volume well above average is more reliable, a rise on falling volume is a warning sign.

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Related terms

All terms in the options glossary → · Methodology →