Relative Volume (Triangle Emoji): Measuring Market Participation

While Volatility Mike and its associated indicators (like Mike Bollinger Bands and Mike Ichimoku) provide insights into price action and momentum, it's crucial to understand the force behind those moves. That's where Relative Volume (RVol) comes in.

We apply a 5-period Relative Volume calculation to the Mike indicator. This measures the current volume relative to its recent average. The resulting value is then visualized with a triangle emoji (▲), whose color indicates the strength of the volume.

The Triangle Emoji: Visualizing Volume Strength

The color of the triangle emoji provides a quick and intuitive assessment of market participation:

• Yellow Triangle (▲): Indicates Relative Volume is greater than 1.2. This suggests above-average volume and a degree of conviction behind the momentum.
• Orange Triangle (▲): Indicates Relative Volume is greater than 1.5. This signals strong volume and a higher degree of conviction.
• Red Triangle (▲): Indicates Relative Volume is greater than 1.8. This signifies very strong volume and a high level of market participation, often associated with powerful, sustained moves.

The Horse (♘): Directional Confirmation of High Volume

The "Horse" (♘) emoji provides an immediate directional confirmation for any bar exhibiting strong Relative Volume. Unlike the triangle emoji's color, which reflects the magnitude of RVol, the Horse's color is determined by Mike's position relative to the Mike Kijun Line:

• The Horse (♘) appears on any bar where a Triangle Emoji (▲) is present.
• 🟢 Green Horse (♘): Appears when Mike's Relative Volume is high (triangle present) AND Mike is positioned ABOVE the Mike Kijun Line. This indicates strong volume backing a bullish momentum bias.
• 🔴 Red Horse (♘): Appears when Mike's Relative Volume is high (triangle present) AND Mike is positioned BELOW the Mike Kijun Line. This indicates strong volume backing a bearish momentum bias.

Importance for Marengo Setups

Relative Volume, through both the triangle emoji and the directional "Horse" (♘), is a critical component of our "Marengo" setups. A high-probability "Marengo" trade requires not just favorable price action and momentum, but also the backing of significant and directionally confirmed market participation.

• The presence of a red or green "Horse" alongside a "Marengo" signal suggests that the explosive move is backed by strong, engaged volume in alignment with Mike's prevailing trend, significantly increasing the confidence in the trade's potential for a sustained run.

In essence, Relative Volume, visualized through the triangle emoji and powerfully filtered by the directional "Horse," acts as the "fuel" and "directional thrust" for our "Marengo" rocket. It provides the crucial confirmation that the market is not just moving, but moving with conviction and clear intent.