| Relative volume is a measure that compares the current trading volume of a security to its average volume over a specified period (Relative volume = Current volume / 1-month average daily volume). It provides insights into the level of interest and activity in a stock or asset relative to its typical trading patterns. Traders use relative volume to identify potential anomalies or shifts in market participation. A spike in relative volume can suggest increased investor interest, potential news or events, or the initiation of a new trend. Conversely, lower relative volume may indicate decreased activity and lower market interest. |
