Glossary

Relative volume

Today's trading volume divided by the stock's normal volume, usually the average of the last 20 days. 2.0 means twice as busy as usual.

In plain English

Raw volume isn't comparable between a giant company and a small one. Relative volume fixes that by comparing each stock with its own normal day.

Uncle Gary explains

Kevin normally sends 20 messages a day to the family group. Today he sent 60, all about a coin with a dog on it. His relative volume is 3.0, and everybody is worried.

Why it matters for your money

We used relative volume to define 'loud' (1.5 times normal and up) and 'quiet' (below normal). Loud or quiet, the results were the same.

Where we tested it

Related terms

All glossary terms. Educational content, not financial advice.