S&P 500   4,604.37
DOW   36,247.87
QQQ   392.17
MarketBeat Week in Review – 12/4 - 12/8
How to Invest Early In the Next Potential Breakthrough Nerve-Sensing Technology (Ad)
Amazon asks federal judge to dismiss the FTC's antitrust lawsuit against the company
What is carbon capture and why does it keep coming up at COP28?
All the trading advice you’ve ever received boils down to this (Ad)
Polish truck drivers are blocking the border with Ukraine. It's hurting on the battlefield
Dozens of animals taken from Virginia roadside zoo as part of investigation
Trading Experts Call It “The Perfect Tesla Trade” (Ad)
Consumer product agency issues warning on small magnetic balls linked to deaths
Peek inside Joe Biden's campaign fundraisers, where big money mingles with old jokes in swanky homes
S&P 500   4,604.37
DOW   36,247.87
QQQ   392.17
MarketBeat Week in Review – 12/4 - 12/8
How to Invest Early In the Next Potential Breakthrough Nerve-Sensing Technology (Ad)
Amazon asks federal judge to dismiss the FTC's antitrust lawsuit against the company
What is carbon capture and why does it keep coming up at COP28?
All the trading advice you’ve ever received boils down to this (Ad)
Polish truck drivers are blocking the border with Ukraine. It's hurting on the battlefield
Dozens of animals taken from Virginia roadside zoo as part of investigation
Trading Experts Call It “The Perfect Tesla Trade” (Ad)
Consumer product agency issues warning on small magnetic balls linked to deaths
Peek inside Joe Biden's campaign fundraisers, where big money mingles with old jokes in swanky homes
S&P 500   4,604.37
DOW   36,247.87
QQQ   392.17
MarketBeat Week in Review – 12/4 - 12/8
How to Invest Early In the Next Potential Breakthrough Nerve-Sensing Technology (Ad)
Amazon asks federal judge to dismiss the FTC's antitrust lawsuit against the company
What is carbon capture and why does it keep coming up at COP28?
All the trading advice you’ve ever received boils down to this (Ad)
Polish truck drivers are blocking the border with Ukraine. It's hurting on the battlefield
Dozens of animals taken from Virginia roadside zoo as part of investigation
Trading Experts Call It “The Perfect Tesla Trade” (Ad)
Consumer product agency issues warning on small magnetic balls linked to deaths
Peek inside Joe Biden's campaign fundraisers, where big money mingles with old jokes in swanky homes
S&P 500   4,604.37
DOW   36,247.87
QQQ   392.17
MarketBeat Week in Review – 12/4 - 12/8
How to Invest Early In the Next Potential Breakthrough Nerve-Sensing Technology (Ad)
Amazon asks federal judge to dismiss the FTC's antitrust lawsuit against the company
What is carbon capture and why does it keep coming up at COP28?
All the trading advice you’ve ever received boils down to this (Ad)
Polish truck drivers are blocking the border with Ukraine. It's hurting on the battlefield
Dozens of animals taken from Virginia roadside zoo as part of investigation
Trading Experts Call It “The Perfect Tesla Trade” (Ad)
Consumer product agency issues warning on small magnetic balls linked to deaths
Peek inside Joe Biden's campaign fundraisers, where big money mingles with old jokes in swanky homes

Stocks with Unusual Volume

Volume mover stocks are companies with the most shares traded during the current trading day relative to their average trading trading volume. A stock may experience above-average trading volume when important new information affecting the stock's valuation is made known to the public. This creates pressure among investors to either buy or sell the stock, leading to heavier trading volume and strong price momentum in the stock. Explanation of average daily trade volume.

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CompanyCurrent PriceVolume GrowthVolumeAverage VolumeDollar VolumeIndicator(s)
VerifyMe, Inc. stock logo
VRME
VerifyMe
$1.15
+13.4%
+200,233.4%30.53 million15,238$34.95 millionNews Coverage
Positive News
Gap Up
Berenson Acquisition Corp. I stock logo
BACA
Berenson Acquisition Corp. I
$10.23
-0.5%
+157,458.1%423,201269$4.33 millionNews Coverage
Venus Acquisition Co. stock logo
VENA
Venus Acquisition
$2.26
+10.2%
+146,597.5%38.00 million25,904$85.88 millionGap Up
Thunder Bridge Capital Partners IV Inc. stock logo
THCP
Thunder Bridge Capital Partners IV
$10.22
-0.2%
+59,445.7%270,010453$2.76 million
Thunder Bridge Capital Partners III Inc. stock logo
TBCP
Thunder Bridge Capital Partners III
$10.21
-0.4%
+8,668.6%10,439119$106,582.19News Coverage
Keyarch Acquisition Co. stock logo
KYCH
Keyarch Acquisition
$10.83
+7,419.8%31,944425$345,953.52
Onconova Therapeutics, Inc. stock logo
ONTX
Onconova Therapeutics
$0.63
+0.8%
+7,374.4%4.29 million57,393$2.71 millionNews Coverage
Investcorp India Acquisition Corp stock logo
IVCA
Investcorp India Acquisition
$10.98
0.0%
+6,150.8%750,52812,007$8.24 million
AQU
Aquaron Acquisition
$10.66
-0.3%
+5,102.5%64,9071,248$691,908.62
MAAQ
Mana Capital Acquisition
$1.36
+12.4%
+4,942.0%1.67 million33,075$2.27 millionGap Down
Corner Growth Acquisition Corp. stock logo
COOL
Corner Growth Acquisition
$10.70
-0.3%
+3,321.8%7,925232$84,797.50Positive News
DEMZ
Democratic Large Cap Core ETF
$28.70
+0.2%
+3,136.9%77,4922,394$2.22 million
MBIA Inc. stock logo
MBI
MBIA
$13.42
+81.8%
+2,875.4%11.52 million387,214$154.61 millionDividend Announcement
Analyst Report
Options Volume
News Coverage
Gap Up
Breeze Holdings Acquisition Corp. stock logo
BREZ
Breeze Holdings Acquisition
$10.90
-1.4%
+2,702.5%41,8251,492$455,892.50
DIST
Distoken Acquisition
$10.64
+0.2%
+2,374.4%100,0004,041$1.06 million
DermTech, Inc. stock logo
DMTK
DermTech
$1.47
+1.4%
+2,135.7%5.14 million229,706$7.55 millionGap Down
Roth CH Acquisition Co. stock logo
USCT
Roth CH Acquisition
$10.95
+0.3%
+1,931.0%207,90010,236$2.28 millionPositive News
SHAP
Spree Acquisition Corp. 1
$10.92
+1,829.9%1.48 million76,878$16.20 millionUpcoming Earnings
Prestige Wealth Inc. stock logo
PWM
Prestige Wealth
$2.22
+0.4%
+1,686.5%1.38 million77,230$3.06 millionNews Coverage
Gap Up
Comtech Telecommunications Corp. stock logo
CMTL
Comtech Telecommunications
$8.79
-29.7%
+1,541.7%2.41 million146,791$21.18 millionAnalyst Downgrade
News Coverage
Gap Down
Intchains Group Limited stock logo
ICG
Intchains Group
$8.70
-2.0%
+1,289.0%18,6881,345$162,492.16News Coverage
US Treasury 6 Month Bill ETF stock logo
XBIL
US Treasury 6 Month Bill ETF
$50.01
+1,262.9%1.75 million128,444$87.55 millionNews Coverage
Aligos Therapeutics, Inc. stock logo
ALGS
Aligos Therapeutics
$0.58
-10.8%
+1,252.0%2.63 million194,825$1.53 millionNews Coverage
Positive News
Gap Up
bluebird bio, Inc. stock logo
BLUE
bluebird bio
$2.86
-40.5%
+1,175.3%54.13 million4.24 million$154.80 millionAnalyst Upgrade
Options Volume
Analyst Revision
News Coverage
Gap Up
Corporación Inmobiliaria Vesta, S.A.B. de C.V. stock logo
VTMX
Corporación Inmobiliaria Vesta
$36.83
+0.9%
+1,170.9%1.05 million82,401$38.57 million
Tailwind Two Acquisition Corp. stock logo
TWNT
Tailwind Two Acquisition
$1.03
+3.0%
+1,117.5%2.71 million222,247$2.79 million
EFHT
EF Hutton Acquisition Co. I
$9.10
+26.7%
+1,111.3%993,41282,013$9.04 millionNews Coverage
Torrid Holdings Inc. stock logo
CURV
Torrid
$4.84
+16.6%
+1,067.7%1.76 million150,679$8.52 millionEarnings Report
Analyst Report
Analyst Revision
News Coverage
Gap Up
ALX Oncology Holdings Inc. stock logo
ALXO
ALX Oncology
$12.26
+32.5%
+991.0%3.85 million352,984$47.21 millionAnalyst Upgrade
News Coverage
Gap Up
TH International Limited stock logo
THCH
TH International
$2.03
+9.1%
+959.4%722,37568,185$1.47 million
Veradigm Inc. stock logo
MDRX
Veradigm
$10.07
-20.0%
+908.8%8.75 million867,048$88.08 millionUpcoming Earnings
Analyst Report
News Coverage
Gap Down
Golden Heaven Group Holdings Ltd. stock logo
GDHG
Golden Heaven Group
$1.36
-41.4%
+889.3%7.82 million790,935$10.64 millionNews Coverage
Gap Down
QQMG
Invesco ESG NASDAQ 100 ETF
$26.76
+0.4%
+880.1%57,0735,823$1.53 million
Virco Mfg. Co. stock logo
VIRC
Virco Mfg.
$8.51
+21.4%
+857.9%675,08670,477$5.74 millionEarnings Report
Dividend Increase
News Coverage
Positive News
Gap Up
Perma-Pipe International Holdings, Inc. stock logo
PPIH
Perma-Pipe International
$7.93
+13.9%
+849.8%55,2525,817$438,148.36News Coverage
Gap Up
Faraday Future Intelligent Electric Inc. stock logo
FFIE
Faraday Future Intelligent Electric
$0.30
+17.1%
+844.5%89.39 million9.46 million$26.46 millionPositive News
Odyssey Marine Exploration, Inc. stock logo
OMEX
Odyssey Marine Exploration
$3.33
-0.6%
+834.2%490,40152,494$1.63 millionUpcoming Earnings
Genfit S.A. stock logo
GNFT
Genfit
$3.44
+7.3%
+833.0%148,94515,965$511,626.08Analyst Report
News Coverage
Gap Up
Goldenstone Acquisition Limited stock logo
GDST
Goldenstone Acquisition
$10.80
+0.8%
+831.3%104,41711,212$1.13 millionGap Up
Lavoro Limited stock logo
LVRO
Lavoro
$6.97
+5.8%
+830.6%103,53911,126$721,666.83Analyst Report
News Coverage
Gap Down
Milestone Scientific Inc. stock logo
MLSS
Milestone Scientific
$0.71
-9.6%
+823.6%494,72653,566$351,255.46News Coverage
Gap Up
Gates Industrial Corp PLC stock logo
GTES
Gates Industrial
$11.72
-4.3%
+804.4%9.86 million1.09 million$115.58 millionGap Down
Phoenix Biotech Acquisition Corp. stock logo
PBAX
Phoenix Biotech Acquisition
$10.90
+798.5%3,519392$38,357.10
Revelstone Capital Acquisition Corp. stock logo
RCAC
Revelstone Capital Acquisition
$10.79
+0.2%
+784.2%54,3646,148$586,587.56News Coverage
Hennessy Capital Investment Corp. VI stock logo
HCVI
Hennessy Capital Investment Corp. VI
$10.46
+758.9%177,42320,656$1.86 million
ALCY
Alchemy Investments Acquisition Corp 1
$10.42
+747.4%105,97712,506$1.10 million
Invesco BulletShares 2031 Corporate Bond ETF stock logo
BSCV
Invesco BulletShares 2031 Corporate Bond ETF
$15.92
-0.5%
+723.5%773,31193,904$12.31 million
Daré Bioscience, Inc. stock logo
DARE
Daré Bioscience
$0.29
-9.3%
+713.1%5.03 million618,078$1.46 millionNews Coverage
Conduit Pharmaceuticals Inc. stock logo
CDT
Conduit Pharmaceuticals
$5.15
+45.5%
+712.0%1.56 million191,987$8.03 millionNews Coverage
Gap Up
Vivid Seats Inc. stock logo
SEAT
Vivid Seats
$7.05
+4.3%
+709.5%9.57 million1.18 million$67.49 millionGap Down
IXAQ
IX Acquisition
$10.97
-0.1%
+702.5%50,1306,247$549,926.10Positive News
Xcel Brands, Inc. stock logo
XELB
Xcel Brands
$1.30
+13.0%
+692.6%99,17812,513$128,931.40Analyst Report
Gap Up
Silence Therapeutics plc stock logo
SLN
Silence Therapeutics
$14.50
-0.5%
+691.7%593,47074,964$8.61 millionPositive News
Delta Apparel, Inc. stock logo
DLA
Delta Apparel
$7.50
-15.4%
+687.1%179,74322,835$1.35 millionAnalyst Revision
News Coverage
Gap Down
HashiCorp, Inc. stock logo
HCP
HashiCorp
$20.81
-16.4%
+685.6%17.56 million2.24 million$365.44 millionEarnings Report
Analyst Report
Insider Selling
Options Volume
News Coverage
Gap Down
MATH
Metalpha Technology
$1.43
-1.4%
+674.9%109,24614,097$156,221.78Gap Down
Jasper Therapeutics, Inc. stock logo
JSPR
Jasper Therapeutics
$0.51
-1.9%
+638.3%2.01 million272,043$1.02 millionGap Down
IBTO
iShares iBonds Dec 2033 Term Treasury ETF
$24.16
-0.7%
+626.9%25,9303,567$626,468.80
Gravitas Education Holdings, Inc. stock logo
GEHI
Gravitas Education
$11.40
+8.6%
+619.3%24,5563,414$279,938.40Upcoming Earnings
Positive News
Gap Up
Smith & Wesson Brands, Inc. stock logo
SWBI
Smith & Wesson Brands
$12.61
-9.1%
+610.7%2.88 million405,696$36.36 millionEarnings Report
Dividend Announcement
Analyst Report
Options Volume
News Coverage
Gap Down
Kaixin Auto Holdings stock logo
KXIN
Kaixin Auto
$1.69
+19.0%
+603.5%969,139137,767$1.64 millionGap Up
bleuacacia ltd stock logo
BLEU
bleuacacia
$10.62
+0.4%
+597.8%950136$10,089.00
Rani Therapeutics Holdings, Inc. stock logo
RANI
Rani Therapeutics
$3.14
+20.3%
+589.9%513,97474,505$1.61 millionInsider Selling
News Coverage
Gap Up
Chavant Capital Acquisition Corp. stock logo
CLAY
Chavant Capital Acquisition
$11.65
+1.3%
+589.3%7,7281,121$90,031.20
Global Indemnity Group, LLC stock logo
GBLI
Global Indemnity Group
$28.75
+580.6%28,5094,189$819,633.75Analyst Report
News Coverage
RH stock logo
RH
RH
$242.01
-14.0%
+572.2%3.73 million555,233$903.24 millionEarnings Report
Analyst Upgrade
Analyst Revision
News Coverage
Gap Down
First US Bancshares, Inc. stock logo
FUSB
First US Bancshares
$9.23
-1.1%
+566.5%16,8902,534$155,894.70Positive News
BayFirst Financial Corp. stock logo
BAFN
BayFirst Financial
$10.92
-1.0%
+555.5%24,3643,717$266,054.88Positive News
Johnson Outdoors Inc. stock logo
JOUT
Johnson Outdoors
$49.10
-9.9%
+541.4%150,10023,402$7.37 millionEarnings Report
Dividend Announcement
News Coverage
Gap Down
DocuSign, Inc. stock logo
DOCU
DocuSign
$49.73
+4.8%
+504.6%21.42 million3.54 million$1.07 billionEarnings Report
Analyst Report
News Coverage
Gap Down
CRISPR Therapeutics AG stock logo
CRSP
CRISPR Therapeutics
$64.54
-8.1%
+504.2%17.23 million2.85 million$1.11 billionAnalyst Report
Options Volume
Analyst Revision
News Coverage
FFBW, Inc. stock logo
FFBW
FFBW
$11.45
-1.2%
+495.6%13,3002,233$152,285.00News Coverage
Texas Community Bancshares, Inc. stock logo
TCBS
Texas Community Bancshares
$12.17
+0.6%
+494.8%10,5071,766$127,870.19Gap Up
iShares Emerging Markets Infrastructure ETF stock logo
EMIF
iShares Emerging Markets Infrastructure ETF
$20.45
-0.2%
+476.2%8,6321,498$176,524.40
MicroAlgo Inc. stock logo
MLGO
MicroAlgo
$2.26
+10.2%
+474.6%38.00 million6.61 million$85.88 millionUpcoming Earnings
News Coverage
Gap Up
Happiness Development Group Limited stock logo
HAPP
Happiness Development Group
$2.62
+7.8%
+472.6%82,10514,340$215,115.10Gap Up
eFFECTOR Therapeutics, Inc. stock logo
EFTR
eFFECTOR Therapeutics
$0.52
-9.0%
+470.7%14.20 million2.49 million$7.37 millionNews Coverage
NeuroOne Medical Technologies Co. stock logo
NMTC
NeuroOne Medical Technologies
$1.92
+7.3%
+464.1%828,397146,861$1.59 millionUpcoming Earnings
News Coverage
Applied DNA Sciences, Inc. stock logo
APDN
Applied DNA Sciences
$0.88
-18.4%
+462.4%158,89928,252$139,990.02Earnings Report
Analyst Report
News Coverage
Gap Down
SigmaTron International, Inc. stock logo
SGMA
SigmaTron International
$3.05
-16.8%
+460.6%78,51714,007$239,476.85News Coverage
Gap Down
CI Financial Corp. stock logo
CIXXF
CI Financial
$10.63
-0.2%
+454.6%18,9433,416$201,364.09
U Power Limited stock logo
UCAR
U Power
$0.39
+3.0%
+447.3%13.29 million2.43 million$5.18 millionGap Down
BuzzFeed, Inc. stock logo
BZFD
BuzzFeed
$0.35
+11.7%
+441.9%1.04 million191,064$367,476.95News Coverage
Ares Acquisition Co. II stock logo
AACT
Ares Acquisition Co. II
$10.40
+0.2%
+441.7%261,93348,354$2.72 million
Kewaunee Scientific Co. stock logo
KEQU
Kewaunee Scientific
$22.10
-3.0%
+439.8%12,0322,229$265,908.40News Coverage
NextCure, Inc. stock logo
NXTC
NextCure
$1.35
+8.0%
+437.1%244,59345,539$330,200.55Gap Down
SIGA Technologies, Inc. stock logo
SIGA
SIGA Technologies
$6.25
+6.1%
+434.8%1.93 million360,464$12.05 millionPositive News
iShares iBonds Dec 2027 Term Treasury ETF stock logo
IBTH
iShares iBonds Dec 2027 Term Treasury ETF
$22.09
-0.4%
+432.0%600,944112,952$13.27 million
Xponential Fitness, Inc. stock logo
XPOF
Xponential Fitness
$10.60
-13.0%
+427.5%2.67 million505,543$28.27 million
Bitcoin Depot Inc. stock logo
BTM
Bitcoin Depot
$2.94
+17.6%
+425.8%571,838108,750$1.68 million
Landcadia Holdings IV, Inc. stock logo
LCA
Landcadia Holdings IV
$10.43
+0.6%
+423.3%720138$7,509.60
The European Equity Fund, Inc. stock logo
EEA
The European Equity Fund
$8.47
+0.4%
+412.0%22,9184,476$194,115.46News Coverage
Vacasa, Inc. stock logo
VCSA
Vacasa
$7.17
-0.3%
+405.9%186,61136,889$1.34 million
Pathfinder Bancorp, Inc. stock logo
PBHC
Pathfinder Bancorp
$13.25
+3.0%
+404.9%3,468687$45,960.71News Coverage
Maison Solutions Inc. stock logo
MSS
Maison Solutions
$13.80
-4.8%
+404.3%4.28 million848,946$59.08 million
Magnum Opus Acquisition Limited stock logo
OPA
Magnum Opus Acquisition
$10.74
+0.1%
+401.6%51,80210,327$556,353.48Upcoming Earnings
Lululemon Athletica Inc. stock logo
LULU
Lululemon Athletica
$489.64
+5.4%
+393.0%7.14 million1.45 million$3.50 billionEarnings Report
Analyst Report
Buyback Announcement
Analyst Revision
News Coverage
PRSR
Prospector Capital
$10.96
+392.1%50,82210,328$557,009.12Stock Split
News Coverage
Anixa Biosciences, Inc. stock logo
ANIX
Anixa Biosciences
$4.08
+13.3%
+391.3%896,890182,568$3.66 millionAnalyst Report
News Coverage
ICC Holdings, Inc. stock logo
ICCH
ICC
$15.50
+1.6%
+388.4%3,450706$53,475.00

Key Points

  • Unusual volume can precede a large stock price move.
  • Different catalysts can cause large volume spikes ranging from rumors to news and short squeezes.
  • It’s crucial to avoid FOMO when encountering stocks surging on heavy volume.
  • 5 stocks we like better than EXA)
Candlestick graph in stock market; learn more about unusual volume stocks

Volume is like a truth serum in the stock market. Breakouts and breakdowns on heavy volume get follow-through as interest picks up. High volume can often precede large impending prices. 

At the very least, it brings more interest and eyeballs to the stock. When volume surges, there could be an opportunity. This article will explore what unusual volume means and how to find stocks with unusual volume. We'll also cover the pitfalls to avoid when trading unusual volume stocks. 

Learn the different types of catalysts that can generate unusual volume so you can get familiarized with and prepared for when you encounter them. 

Understanding Unusual Volume

Unusual stock volume usually implies some active and concentrated interest in the stock. Actions speak louder than words, and this statement is never truer than when it comes to heavy volume surges in a stock. That action is trades and lots of them. A stock may have interest, but heavy volume proves active interest. Unusual volume usually pertains to stocks experiencing a surge in trading volume resulting in a rapid price rise or price collapse.

The volume is "unusual" when a heavy volume surge happens that is a multiple of the average daily trading volume. Eventually, the reason for the big surge in volume gets discovered and spreads as the news gets distributed. You can usually detect heavy volume on stock screeners and possibly on business news networks and blogs. This is how unusual volume turns into an even heavier volume price move. 

Why Does Trading Volume Change?

Many catalysts can cause the trading volume to change. Factors range from general market-moving news and events to company-specific news. Some common factors can cause unusual volume, driving stock prices higher or lower: 

  • Company-specific news: Material news from a company through an SEC filing or a press release can trigger robust and unusual volume spikes. Quarterly earnings reports and earnings guidance almost always cause the volume to change dramatically. 
  • Economic news: Economic news events like GDP reports and interest rate changes can cause volume to surge. Government-issued economic reports like the consumer price index (CPI) can trigger strong, unusual stock volumes. Retail sales reports can impact the retail industry stocks. Home sales and new home start reports can impact homebuilder stocks. 
  • Events: Scheduled and unscheduled events like a product launch or a developers' conference can cause volume to surge, especially if something unexpected occurs. 
  • Analyst ratings: When analysts upgrade or downgrade a stock, it can change the sentiment and cause a volume swell in a stock. Large analyst firms and brokerages have a more significant impact than smaller boutique firms. 
  • Hot trend: When a hot theme, segment or industry has much positive sentiment, it can cause unusual volume for stocks in sympathy. The metaverse rush, cloud computing and the artificial intelligence (AI) wave in 2023 caused many stocks to surge in sympathy with the AI trends.
  • Rumors: The possibility of a buyout or merger is a common rumor that can cause unusual volume. Rumors can be positive or negative and spawn heavy volume in either case. 
  • Bear raids and short squeezes: It's not uncommon for a stock to get unusual volume as prices sink as a reaction to a bearish report or blog. Short seller firms have been brazen in issuing press releases and reports meant to cause panic selling stocks they have short positions in. However, stocks can also surge higher on extremely heavy volumes due to a short squeeze. This was a common theme during the meme stock mania of 2021. 
  • Technical patterns: Sometimes a stock forms a strong technical pattern forming a breakout on no news but a strong chart pattern. Some of the most effective chart pattern breakouts can trigger volume surges as a breakout forms and accelerates. 

What is Average Daily Trading Volume?

We must establish a baseline to distinguish between unusually heavy and normal trading volumes. That's where the average daily trading volume comes into play. It tells us the "normal" volume for stock and helps us identify when the extraordinary volume is present when a multiple of the normal volume emerges. 

The average daily trading volume is calculated by adding the total trading volume per day for a specific number of days and dividing that figure by the name of days. Once you have the average daily trading volume, you can use that as a baseline to determine when the unusual stock volume occurs. It provides insights into the liquidity of the underlying stock. As average daily volume trends higher, more liquidity comes into the stock.  

Unusual volume stocks infographic

What is Considered Unusual Volume?

Stocks that trade a multiple of their average daily trading volume are considered to be experiencing unusual volume. There are levels of magnitude when it comes to unusual volume. A stock trading at 50 times average daily trading volume is more unusual than a stock trading at just three times average daily trading volume. It's important to find the catalyst for the volume surge to understand why the unusual volume is occurring. 

What Stocks Trade at the Highest Volume?

Large-cap, blue chip stocks are the most widely traded and consistently have the highest volume, especially if they are components of various benchmark indexes. There are always cases where penny stocks with unusual volume may surpass blue chips on any single day, but the volume always returns to its baseline eventually. 

Why Do Traders Use Average Daily Trading Volume?

The average daily trading volume is used as a baseline context to determine when there is unusual volume. There are more uses for using the average daily trading volume as an indicator. Traders like to use it as a measure of liquidity. This enables traders to buy and sell the stock without impacting the price. Trading volume is a truth serum. High trading volume helps to confirm the strength and legitimacy of a price trend. 

Example of Unusual Volume

You can use the MarketBeat screener to find stocks with unusual volume today. The leading unusual volume stock happens to be trading up 91% on the day, Delcath Systems Inc. (NASDAQ: DCTH), an oncology healthcare equipment maker. The MarketBeat screener also provides the various indicators that could be a factor causing over 100X the average volume as trading volume rises 13,568%. 

Example of Delcath Systems Inc. on MarketBeat

The candlestick chart with volume bars illustrates the dramatic explosion in trading volume today compared to normal days, where volume is virtually non-existent on the chart. The main catalyst was news of an FDA approval for its Hepzato Kit device for treating liver-dominant eye cancer. Hepzato delivers chemotherapy to the liver for adults with uveal melanoma, a cancer affecting the eye's melanocytes. FDA approvals are a key catalyst for unusually high volume spikes and price appreciation.

How to Find Unusual Volume Stocks in Real Time 

Now that you know the answer to, "What is unusual volume?" and how it can affect stocks, it’s time to learn how to find stocks with unusual volume. Here are the four steps to finding unusual volume stocks.

Stocks with unusual volume listing on MarketBeat.

Step 1: Use a stock screener.

It's hard to find stocks with unusual volumes manually. You will usually find them on a list or using an unusual volume scanner. To find a stock with unusual volume, go to MarketBeat and use the stocks with unusual volume screener tool (scroll up on this page). As it throws out a list of stocks with unusual volume, you will want to narrow your search.

Step 2: Select the stock(s) with high volume growth.

You can filter or select your stocks by various metrics depending on your screener. Some unusual volume scanners will report stocks trading at a XX multiple of the average daily trading volume. 

Some screeners will present the data as volume growth, placing a percentage on the increased volume from its average daily trading volume. Once you get your list, you can arrange the list by various criteria like stocks by volume, alphabetical, or price and dollar volume. There are also standalone high relative volume stock screeners to which you can pay a subscription for real-time stocks' unusual volume. The NASDAQ website also lists NASDAQ unusual volume lists anyone can access throughout the day. 

Step 3: Find the catalyst for the stock's unusual volume. 

Try to find the reason for the unusual volume. You can look up the stock on MarketBeat and check the news feed or any other news source. Make sure to have multiple news sites available in case it hasn't reached mainstream sites. You can also use social media to check using the stock symbol as the search keyword. Rumors will be tough to find other than on social media. FDA approval news is more widely available and prone to generating unusual volume to the upside. Check the float and short interest to determine if a short squeeze is possible. 

Step 4: Analyze the charts.

Check the stock charts to see if there was a price rise or a price reversal in the news. Frequently, if a stock price rises into material news or an event, it can trigger a sell-the-news reaction after the announcement. This is why analyzing the stock price action preceding and leading up to the catalyst is important. Once you analyze the stock technically, you can decide whether to plan your trade or move on. 

Limitations of Tracking Volume Spikes

Tracking unusual volumes, like volume spikes, can have many limitations. It's important to follow the four steps thoroughly to avoid pitfalls. 

Volume spikes can be misleading if it's only for a few periods. It can vastly skew the daily average trading volume. For example, if a stock only does 100,000 shares a day in volume for 10 days and then suddenly has a 50 million share trading day, it skews the average daily trading volume to 5.9 million, up from just 100,000 shares a day. This is misleading. Therefore, the fourth step to analyzing the charts is crucial. Observe the volume bars before and after the volume spikes and be aware of a potentially misleading average daily volume amount. Smooth it out with longer periods, like 200 days of history instead of 30 days.

Plan Ahead to Avoid FOMO 

It's human nature to get excited about the unusual volume that leads to a massive price spike and impulsively jump in to get a piece of the action. This is called fear of missing out (FOMO). 

FOMO triggers that impulse to chase stocks higher under the assumption or fear it will go much higher without you. Unfortunately, that's when the peak may be nearing. Remember that “smart” money is already taking positions before volume surges happen. By the time the volume spikes and appears on stock screeners making headlines, the action may have already peaked or is coming back down. It can be a game of musical chairs. When the news is out, traders try to sell into the momentum. Therefore, it pays to plan and analyze the stock thoroughly on stock charts to patiently wait for pullbacks to enter rather than chase the highs. 

Jea Yu

About Jea Yu

  • JeaYu21@gmail.com

Contributing Author

Trading Strategies

Experience

Jea Yu has been a contributing writer for MarketBeat since 2019.

Areas of Expertise

Equities, options, ETFs and futures; fundamental, qualitative, quantitative and technical analysis and pattern identification; active and swing trading; trading systems and methodology development

Education

B.A. University of Maryland, College Park

Past Experience

U.S. equity markets trader, writer and analyst for over 25 years. Published four books by publishers McGraw-Hill, John Wiley & Sons, Marketplace Books and Bloomberg Press. Speaker at various expos and seminars and has been quoted and featured in USA Today, The Wall Street Journal, Traders Magazine, The Financial Times and various trade publications, including Stocks & Commodities, Active Trader and Online Investor.

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