Relative Volume (RVOL)

Cumulative RVOL — Measure Participation, Not Just Volume

Most traders look at raw volume and assume they understand engagement.

They don’t.

Cumulative RVOL answers a different question:

Is participation expanding or lagging relative to what is normal for this exact time of day?

That distinction is the edge.

---

What The Pictured Example Actually Shows

Overnight Session

• Raw volume appears low.
• Nothing looks aggressive.
• Yet cumulative RVOL climbs toward 2.0+.

Translation:

This overnight session traded at roughly double its normal participation for that window.

The tape looks quiet.
Participation is not.

Raw volume alone cannot reveal that.

---

New York Open

• Raw volume explodes.
• Large bars dominate the histogram.
• It looks like strong engagement.

But cumulative RVOL rolls over and declines.

Translation:

Yes, volume is high.
But it is underperforming relative to typical NY opens.

It looks powerful in absolute terms.
It is weak in relative terms.

This is exactly where raw volume misleads traders.

---

Why Cumulative RVOL Is Different

Raw Volume:

• Shows how much traded.
• Ignores time-of-day context.
• Makes every open look strong.

Cumulative RVOL:

• Normalizes against historical session behavior.
• Adjusts for session progress.
• Shows whether participation is accelerating or decaying.

Because it is cumulative, direction matters:

Rising RVOL

• Participation expanding faster than normal.
• Moves more likely supported by broad engagement.

Falling RVOL

• Participation lagging relative to history.
• Price may be moving without strong backing.

This does not predict direction.
It defines market quality.

---

Futures-Specific: Rollover-Aware Mode

During contract transitions, liquidity shifts between expiries distort traditional volume comparisons.

The optional rollover-aware cumulative plot:

• Maintains continuity across contract changes
• Prevents artificial volume distortions
• Keeps participation comparisons valid during expiry windows

You can enable or disable this mode as needed.

---

Why Traders Care

Sessions with suppressed cumulative RVOL often exhibit:

• Reduced follow-through

• Higher reversal probability
• Less sustained breakouts
• Cleaner but thinner trends

Sessions with expanding RVOL tend to show:

• Stronger continuation
• Broader engagement
• Greater conviction

Cumulative RVOL exposes this in real time.

---

Important Setup Requirement

This indicator builds its baseline from historical intraday data.

For accurate readings:

• Load at least 30 trading days of intraday history.
• Disable Tick Replay to reduce load time.

Insufficient history will produce incomplete relative values.

---

Bottom Line

Raw volume tells you activity.
Cumulative RVOL tells you participation relative to expectation.

Those are not the same thing.

If volume influences your trading decisions, this belongs on your chart.