Relative Volume (RVOL) [JopAlgo]

Relative Volume (RVOL) [JopAlgo] — “Filter Fakes, Ride Real Moves”

What it does:
Shows how today’s volume compares to its own average.
RVOL = current volume ÷ SMA(volume, length)

RVOL > cutoff → participation above normal (green)

RVOL < cutoff → participation below normal (red)

Use it to confirm breaks, filter entries, and avoid chasing moves fueled by thin volume.

Read it in 5 seconds

Above/Below the cutoff line (white) = high/low participation now.

Spikes through the cutoff on a break = real interest.

Dry-ups (well below cutoff) into support/resistance = good risk for mean-revert or pullback entries.

If you remember one rule: don’t chase a breakout with RVOL under the cutoff.

Simple playbook (copy this)

Breakout confirmation
Break at VAH/LVN/structure and RVOL > cutoff → take the retest that holds.
If RVOL stays below cutoff on the break → likely fake; wait for reclaim.

Pullback in trend
Trend up, price pulls to AVWAP / VAL / MA cluster with RVOL below cutoff → take the bounce when price turns; add if RVOL rises on the resume.

Fade the exhaustion
Into resistance, huge RVOL spike but no follow-through (long wick, CVD Absorption) → look for the fail back inside value.

Do less in chop
When RVOL hugs below cutoff all session, expect range; trade edges only.

Timeframe guide

1–5m (scalps): Signals are frequent. Keep cutoff ≥ 1.5; demand RVOL on breaks.

15m–1H (intraday): Sweet spot. cutoff 1.5–2.0 is a solid filter.

2H–4H (swing): Look for clustered bars > cutoff during expansions; dry-ups flag pullback entries.

1D+: Use RVOL to separate true trend days from drift.

Settings that matter

Length (default 14):
Shorter = reacts faster; Longer = smoother baseline.

Intraday: 14–20

Swing/Daily: 20–30

Cutoff (default 1.0):
Set the bar for “real” volume.

Conservative confirmation: 1.5–2.0

For slower pairs/timeframes: 1.2–1.5
Tune by scrolling back and marking where good breaks happened.

Color logic: green above cutoff, red below—no surprises.

Best combos (kept simple)

Volume Profile v3.2 [JopAlgo]: Confirm breaks of VAH/VAL/LVNs with RVOL > cutoff; target POC/HVNs.

Anchored VWAP [JopAlgo]: Reclaims/rejections with RVOL > cutoff stick more often.

CVDv1 [JopAlgo]:

Yes: RVOL high and CVD Alignment OK and no Absorption → higher-quality move.

No: RVOL high but Absorption red → don’t chase; look for fail/reclaim.

Pattern cheat sheet

Trend day: RVOL stays > cutoff on pushes; pullbacks show RVOL dip, then re-expand.

False break: Price pokes level, RVOL < cutoff, quick give-back.

Accumulation: Series of low-RVOL bars compressing under a level → watch for the first RVOL pop to go.

Exhaustion wick: RVOL spike + long wick into resistance/support → likely trap unless next bar accepts.

Notes & pitfalls

Exchange volume varies (crypto): use the same feed you trade and calibrate cutoff there.

RVOL ≠ direction: it’s participation. Always pair with location, structure, and flow.

Quick defaults to start

Length: 20

Cutoff: 1.5 (intraday) / 1.8–2.0 (for stricter confirmation)

Process: Level → RVOL above/below cutoff → CVD quality → Execute with structure-based risk

Mini-disclaimer

Educational tool, not financial advice. Test first, size sensibly, and always anchor decisions to levels, flow, and risk.