Trading in financial markets—especially in fast-moving arenas like cryptocurrencies and stocks—requires more than just price analysis. One of the most powerful yet often overlooked tools is volume. Understanding how volume behaves relative to historical norms can give traders a significant edge. That's where the Volume+ (RVOL / Alerts) Indicator comes into play.
This advanced volume-based tool goes beyond basic volume tracking by introducing Relative Volume (RVOL), dynamic thresholds, and real-time alert functionality. Whether you're scanning for breakout opportunities or monitoring for unusual market activity, this indicator helps identify key moments when volume signals potential price movement.
What Is the Volume+ RVOL Indicator?
The Volume+ Indicator is a custom script designed to enhance your technical analysis with deeper insights into trading volume behavior. At its core, it calculates Relative Volume (RVOL)—a metric that compares current volume to a moving average of past volume. This allows traders to spot when volume is significantly higher than usual, which often precedes strong price moves.
Unlike standard volume indicators, this tool adds visual cues and alerts based on user-defined thresholds:
- Volume spikes above a fixed level
- RVOL exceeding a set multiplier
- New volume highs within a defined lookback period
These signals are color-coded on the chart and can trigger automated alerts, making it ideal for active traders who need timely notifications without constant screen monitoring.
👉 Discover how real-time volume alerts can improve your trading precision.
How the RVOL Indicator Works
The logic behind the indicator is both intuitive and effective:
- A moving average (MA) of volume is calculated using a user-specified length and type (EMA, SMA, HMA, WMA, or DEMA).
- Relative Volume (RVOL) is derived by dividing current volume by the MA value.
- When volume crosses any of three customizable thresholds, the volume bar changes color—typically to teal—indicating a potential signal.
- Alerts can be configured to notify you when these conditions are met.
You can use one, two, or all three threshold types simultaneously, allowing for layered confirmation before acting on a signal.
Key Thresholds Explained
- Static Volume Threshold: Triggers when raw volume exceeds a preset number. Useful for high-volume assets like major cryptocurrencies or large-cap stocks.
- RVOL Threshold: Activates when relative volume hits a certain multiple (e.g., 2.5x average). This normalizes volume across different timeframes and assets.
- Lookback High Threshold: Fires when volume surpasses the highest reading over a specified number of previous periods (e.g., the last 50 candles). Ideal for detecting breakout-level activity.
Customizable Settings for Precision Trading
One of the strengths of this indicator is its flexibility. Every aspect can be tailored to fit your strategy and market conditions.
Moving Average Configuration
- MA Length: Adjusts how many periods are used to calculate average volume (default: 50).
- MA Type: Choose from EMA (reacts faster), SMA (smoother), or advanced types like HMA and DEMA for nuanced filtering.
- Show MA?: Toggle whether the moving average line appears on the chart.
Signal & Alert Controls
- Volume To Trigger Signal: Set a baseline volume amount that must be exceeded.
- RVOL To Trigger Signal: Define the relative volume multiplier (e.g., 2.0 = double the average).
- Lookback Period: Determine how far back to check for previous volume highs (default: 50 periods).
- Alert Activation: Independently enable alerts for static volume, RVOL, or lookback breaches.
Visual Clarity Options
- Draw Threshold?: Hide or show threshold lines (blue, purple, red) on the chart while still receiving visual bar coloring and alerts.
This level of customization ensures the indicator adapts to volatile crypto markets as easily as to more stable equities environments.
Setting Up Alerts for Real-Time Notifications
Timeliness is crucial in trading. The built-in alertcondition() function integrates seamlessly with TradingView’s alert system, sending notifications via email, SMS, or app push when any defined condition is met.
For example:
"RVOL signal for BTCUSD"
— Sent instantly when Bitcoin’s volume exceeds 3x its 50-period EMA
To create an alert:
- Open the indicator settings on your chart.
- Click “Add Alert.”
- Select the condition: “Volume Alert!”
- Choose notification method and frequency.
👉 Learn how automated alerts can help you catch early market moves before they happen.
Practical Use Cases
Cryptocurrency Breakout Detection
In crypto markets, sudden surges in volume often precede sharp price movements. By setting an RVOL threshold of 3.0 and enabling lookback alerts, you can detect when a coin like Ethereum or Solana breaks out on unusually high volume—potentially signaling institutional interest or news-driven momentum.
Pre-Market Stock Scanning
Day traders use this indicator to scan for pre-market movers. A stock showing 5x average volume before open may indicate pending earnings news or short squeeze potential.
Confirmation Tool for Price Patterns
Combine RVOL spikes with technical patterns like flags, triangles, or double bottoms. A breakout confirmed by high relative volume has a higher probability of success.
Core Keywords
- Relative Volume (RVOL)
- Volume indicator
- Trading alerts
- Volume spike detection
- Cryptocurrency trading tools
- Stock trading indicators
- Real-time trading signals
- Volume analysis
Frequently Asked Questions (FAQ)
Q: Can this indicator be used on any asset class?
A: Yes. It works on stocks, cryptocurrencies, forex, and commodities—any market where volume data is available on TradingView.
Q: Does it work on all timeframes?
A: Absolutely. From 1-minute scalping charts to weekly swing trading views, the indicator adapts based on your selected MA length and lookback period.
Q: How accurate are the alerts?
A: Alerts reflect exact script conditions. Their effectiveness depends on how well you tune thresholds to your asset’s typical volume profile.
Q: Is programming knowledge required to use it?
A: No. The indicator is plug-and-play once added to your chart. However, the open-source Pine Script allows developers to modify and extend its functionality.
Q: Can I combine this with other indicators?
A: Definitely. Pair it with RSI for overbought/oversold confirmation, MACD for trend validation, or order flow tools for deeper context.
Q: Is there a mobile version?
A: Yes. Alerts sync across devices through TradingView’s mobile app, ensuring you stay informed even when away from your desk.
Final Thoughts
The Volume+ (RVOL / Alerts) Indicator bridges the gap between raw data and actionable insight. By transforming volume into a dynamic, responsive signal generator, it empowers traders to act decisively in fast-paced markets.
Whether you're hunting for early breakouts, validating trade setups, or simply staying ahead of market sentiment shifts, this tool brings clarity to one of the most important metrics in technical analysis.
👉 Start leveraging intelligent volume analysis in your trading strategy today.