Relative Volume - futures trading

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Relative Volume

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 or RTH
- 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).

Example One:
A trader may want to compare today's volume (for ETH) as a % of the average of the last 30 days ETH volume.

Example Two:
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.

See also:
Created by  steve2222 , February 13th, 2016 at 02:12 AM
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