Relative Volume: Relative Volume Thresholds

Relative Volume Overview[\b]

• The MetaWorld Relative Volume indicator enhances volume analysis in several ways:
  
• First, volume has been normalized to a percentage value, enabling standard thresholds for strong, average, and weak volume.
  
• Second, each candle's volume is evaluated against its history to identify statistically significant bull and bear volume bars that may indicate whale (or institutional) buying and selling.
  

Relative Volume Thresholds[\b]

• Volume has been normalized to a percentage value based on a user-defined period (default: 50).
  
• This enables using standard thresholds across all assets to determine strong, average, and weak volume.
  
• Price moves with strong relative volume are more meaningful to technical analysis than equivalent price moves with weak relative volume.
  
• Use as confluence with price breakouts...trends can often be identified early when price breakouts are supported by strong relative volume.
  
• Always practice risk management: Use proper position sizing and a stop-loss on every trade.
  
  * This tutorial is intended for educational purposes only.[\list]