AVL is generally used in trading charts to mean Average Volume—meaning, the average trading volume over a specific period (like 7 days, 30 days, or based on a set number of candles).
1. What is AVL (Average Volume)?
It shows how much average volume has occurred per candle over a specific time.
Often, a moving average volume line is shown on the chart as AVL to easily identify sudden volume spikes or drops.
2. How does AVL help?
3. Practical examples
Assume the AVL for 30 candles on a 15-minute timeframe is 15B (15 billion).
If the current candle has 25B volume (above AVL), understand that sudden large buying or selling pressure has come.
If the price goes up with this spike, strong breakout; if it goes down, breakdown.
4. Strategies
Breakout filter: Only take that breakout where the volume bar is above average (AVL).
Avoiding Fakeouts: Often the price goes up but the volume stays below AVL—this is a fake breakout (not a confident entry).
Understanding Sideways: Price is stable, volume is low (below AVL)—better to book profits, avoid new trades.
In summary:
AVL = Average Volume
Volume bar above AVL = Strong move/trend confirmation
Volume bar below AVL = Weakness/low interest in the market