In this guide
Start with the denominatorThe ratio itself is simpleVolume does not remove uncertaintyUse consistent comparisonsStart with the denominator
A statement such as “2× volume” is incomplete unless the reference is defined. Is the denominator a 20-period simple average, a 50-period average, the same time of day, or something else? Different denominators produce different ratios.
The ratio itself is simple
Observed volume divided by reference average volume gives the ratio. An observed value of 1.5 million against a reference average of 750,000 equals 2.0×. PreBreakout reports the arithmetic but intentionally does not label 2.0× as good, bad, strong or sufficient.
Volume does not remove uncertainty
A high ratio can occur during continuation, reversal, news, rebalancing, index events or many other situations. Without context, the number does not establish causation and does not predict direction.
Use consistent comparisons
For educational analysis, the most important discipline is consistency: use the same definition of the reference period when comparing examples. Changing the denominator while keeping the label “relative volume” makes examples look comparable when they are not.