An indicator (calculation) that compares current volume to historic volume for a given contracts
/instrument/asset and represents the answer as a percentage. Also known as RVOL
A trader needs to determine how he wants to calculate this:
- based on ETH
- what period does 'current volume' represent eg hour, day , week etc
- what historic period is current period compared to eg average of the last X hours, days, weeks etc
- is the historic calculation based on all historic time periods (eg last 30 days) or comparable historic time periods only (eg the last 7 Wednesdays compared to this Wednesday - being the current time period).
A trader may want to compare today's volume (for ETH) as a % of the average of the last 30 days ETH volume.
A trader may want to compare the volume for Wednesday's 10am to 11am hour with the average volume for the previous 7 Wednesday's volume between 10am and 11am.
Note: the software used by the trader may limit the variations of RVOL calculations that can be performed.