volumetoaverage
Volumetoaverage is a financial metric that expresses current trading volume relative to a moving average of past volume over a chosen period. It is used to gauge whether activity in a security is higher or lower than typical, helping traders assess liquidity and interest.
Calculation and variants: volumetoaverage is typically calculated as Vt / Vavg(n), where Vt is the current volume
Interpretation: values near 1 indicate average activity. Values greater than 1 indicate above-average volume, suggesting heightened
Applications: traders use volumetoaverage to confirm breakouts, assess liquidity risk when entering or exiting positions, and
Limitations: usefulness depends on the averaging window and data quality. Different timeframes, market hours, or corporate