Volume / average ratio
Vol / avg
What it is
Compares today's traded volume (or recent volume) to the 20-session average. A ratio of 2× means the stock traded twice as much as usual. Volume confirms the conviction behind a price move.
How to read it
A price rise on high volume is more credible than a rise on low volume. Abnormally high volume without a matching price move often signals a change of hands (institutionals exiting, or entering).
Common reference points
- Very low volume — little interest< 0.5×
- Normal volume0.5 – 1.5×
- High volume — strong conviction1.5 – 3×
- Exceptional volume — event> 3×
Orders of magnitude, not a rule: the same number does not mean the same thing from one sector to the next.
What it does not tell you
Volume alone doesn't tell direction. Large bearish volume is a warning (possible capitulation). Always read volume IN CONTEXT of the accompanying price move.
Other measures — Technical
Educational content. Polaris is not a registered investment adviser and makes no recommendation.