Relative Volume
Volume Spread Analysis glossary · Effort vs Result & Spread/Close Analysis
Definition
The current bar's volume expressed as a ratio to a recent baseline (typically the 20-bar average), rather than an absolute share or contract count. Computed as Relative Volume = V_current / barV_n, it converts raw volume into a comparable measure across instruments. VSA classifies the ratio into bands—very low (<0.50), low (0.50–0.80), average (0.80–1.20), high (1.20–1.80), very high (1.80–2.50), and ultra-high (>2.50)—so that every volume signal (test, no demand, stopping volume, climax) can be evaluated on a consistent scale.
Relative Volume in plain English
Raw volume numbers are hard to judge, because a million shares might be gigantic for a sleepy stock but tiny for a giant one. Relative volume fixes this by comparing today's volume to its own recent normal (usually the average of the last 20 bars), giving a simple ratio: today div average. So 2.0 means "twice the usual busyness" and 0.5 means "half the usual," no matter which stock you're looking at. VSA then sorts that ratio into labeled bands from very low (<0.50) up to ultra-high (>2.50), so any signal, like a quiet "test" or a dramatic "climax," can be measured on the same fair scale every time.
Related Volume Spread Analysis terms
Volume Spread Analysis practice questions · Volume Spread Analysis flashcards · Volume Spread Analysis study guide