What is Vol Ratio?
Current volume compared to average volume, showing if trading activity is above or below normal.
Think of it like this
Like comparing today's store traffic to the usual crowd - 2x means twice as busy as normal.
Formula
Volume Ratio = Current Volume รท Average Volume- Current Volume: Shares traded today
- Average Volume: Typical daily volume (often 30-day average)
Why it matters
- High volume confirms price moves
- Breakouts on high volume are more reliable
- Low volume moves may be false signals
- Unusual volume often precedes big moves
What's a good value?
< 0.5x
Very Low
Quiet trading, low conviction
0.5-1.5x
Normal
Typical trading activity
1.5-3x
High
Above-average interest
> 3x
Very High
Significant event or breakout
Real-world example
A breakout on 3x average volume is much more significant than one on 0.5x volume.
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