How To Find Stocks With Unusual Volume

Stocks with unusual volume can often make very big moves in the coming months. Stocks with heavy volume can double, triple and even be a ten bagger. On the other hand, stocks that go down on very unusual volume can often lose more than half of its value and then some.

To witness the powerful effect of unusual volume, do take some time to read:

The above articles reveal the secret of how unusual volume affect stocks. It is a well known secret among Wall Street Traders that heavy volume means some big buying or big selling. Some of these stocks are being accumulated by powerful and rich institutions months before they advance in price. Others are being dumped heavily by institutions months before a bad news comes out.

What Is Unusual Volume

What constitutes unusual volume?

Unusual volume is when a stock's trading volume is at least 2X more than the average daily volume. The bigger the volume the better. You can often see a stock experiencing 5X than normal volume when a large group of players are involved in the stock. If you see a stock having 10X the normal volume, then something big is going to happen to the stock!

The chart above is a very good example of what unusual volume can signal. Around November 2016 just after the Presidential Election, unusual volume came into the stock of Bank of America. What happened was investors were buying the stock in anticipation of the effect of Trump's policies which will be beneficial to financial stocks.

Using FinViz To Spot Stocks With Unusual Volume

One of the best way to find stocks with unusual volume for free is by using FinViz is a free stock charting and stock screener that is very popular among traders. You can find lots of screens and trading opportunities by using this free website. I highly recommend it.

When you go to the Home Page of FinViz, you will immediately see a group of predefined scans. Scroll down till you see unusual volume and then click on it.

Once you click on unusual volume, you will see a list of stocks and their charts. Click on "filter" on the top right.

You might want to filter stocks so you come up with the best candidates. Some illiquid stocks are to be avoided. So, you need to have an average volume of at least 100,000. Then you should choose stocks that have a market cap of $300 million and above. This will help you find candidates that are viewed by larger investors and not some penny stocks. You want institution interest because they are the ones that will be buying huge amount of shares in anticipation of a big move.

Keep A Watchlist Of Unusual Volume Stocks

When you see a very good candidate, you might want to put it into your watchlist and carefully monitor it for a few months. Which is usually how long it takes for a stock to make a big move after experiencing unusual volume. Some stocks may take a few days to a few weeks. So, keep it on your watchlist and monitor them daily.

  • If you like this article, consider starting the Stock Market Course. It is free and jam packed with great information for newbies.
  • Want to have updates on the financial markets? Join my Telegram Channel. Dstockmarket Chat Group
  • Help support this page and press the Facebook Like button below. Thanks!

Join Dstockmarket's Facebook Page 

Recent Articles

  1. Technical Analysis Of US Market And Stocks March 2019

    Mar 18, 19 09:23 AM

    Analysis of what is going on in US stock market as well as highlights of some stocks that are forming significant patterns.

    Read More

  2. Technical Analysis Of AAPL : Making Sense Of Apple's Stock Price

    Mar 15, 19 01:07 PM

    Apple is one of those stocks that we should look at almost every day. The reasons is because it is a component of the Dow Jones, the S&P 500 and the Nasdaq Composite. If Apple does well, it will be go…

    Read More

  3. Technical Analysis Of Bahvest (Borneo Aqua Harvest)

    Mar 15, 19 12:59 PM

    Technical analysis and trend analysis of Bahvest stock price. Borneo Aqua Harvest.

    Read More

  4. Technical Analysis Of Dayang

    Mar 15, 19 08:40 AM

    So a friend asked me if Dayang will continue to go up. I guess many are wondering the same question as well. So let's take a look at what the charts are saying.

    Read More

  5. Technical Analysis Of WTK Holdings

    Mar 15, 19 08:30 AM

    Let us take a look at the technical outlook and charts of WTK Holdings.

    Read More

New! Comments

Have your say about what you just read! Leave me a comment in the box below.