RVOL/ExpVol/ATR/ExpR

How it works

The trading signal calculates relative volume by comparing the current 5-minute candle's volume to historical volume data from the same time period over the past 30 days. It updates every 5 minutes throughout the trading day, providing a real-time assessment of trading activity compared to typical historical patterns.

Additionally, the signal computes the Average True Range (ATR) over the last 14 days and uses this information alongside relative volume to estimate the expected price range for the day. This method provides traders with a dynamic understanding of potential market movement based on current trading volume and historical volatility.

Why it may be useful

This trading signal offers traders a sophisticated method to understand current market dynamics by contextualizing trading volume and potential price movement. By comparing current volume to historical data, traders can quickly identify whether a stock is experiencing unusual activity that might signal significant price changes.

The signal's ability to estimate daily expected range helps traders set more informed stop-loss and take-profit levels. It provides a data-driven approach to understanding market volatility, allowing traders to make more strategic decisions about entry and exit points based on empirical volume and range calculations.

When to explore it

The trading signal is most effective during active trading hours when consistent volume data is available. It works best on 5-minute and higher timeframe charts, providing the most accurate insights when the first 5-minute candle has closed and continued updates are available.

Traders should be cautious when relative volume exceeds 3, as the range estimation becomes less reliable at higher volume levels. The signal is particularly useful for day traders and scalpers who rely on short-term volume and volatility insights to make rapid trading decisions.

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