What is a good relative volume in stocks?

The RVOL 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 for that time period. As day traders we like to see RVOL at 2 or higher with a positive catalyst, low float and ideally a higher short interest.

What is considered low volume stock?

Low-volume stocks typically have a daily average trading volume of 1,000 shares or fewer. They may belong to small, little-known companies that trade over-the-counter (OTC). But they can also be traded on major stock exchanges. Smaller and newer companies are also disproportionately represented in low-volume stocks.

What is considered high volume trading?

High Volume Stocks and Low Volume Stocks There’s no specific dividing line between the two. Howerver, high volume stocks typically trade at a volume of 500,000 or more shares per day. Low volume stocks would be below that mark.

What is a good relative volume for day trading?

It is recommended that day traders look for stocks with at least one million in volume. Higher volume also means it’s easier to buy and sell stocks because more people looking to buy or sell.

How important is relative volume?

Without volume, price doesn’t move much. Relative volume tells us how many shares have traded in relation to how many shares are usually traded. It can be a great indicator that unusual price action may be on the way.

Does high volume mean higher volatility?

The relationship between a stock’s volatility and trading volume depends on the type of trading orders. Stock volatility increases with unexpected earnings results or company/industry news. A superficial analysis of beta and volatility shows that stocks with higher trading volumes have higher volatility and vice versa.

How do you know if a stock is high volume?

Stocks generally have high trading volume when there is news about the company or new significant related information. For a stock to make a significant move or break through a resistance level, usually a high trading volume is needed.

What is relative volume?

Relative volume tells us how many shares have traded in relation to how many shares are usually traded. It can be a great indicator that unusual price action may be on the way.

What is a relative volume?

Relative 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.