S&P 500   4,564.95 (-0.05%)
DOW   36,172.58 (+0.13%)
QQQ   386.53 (-0.20%)
AAPL   192.83 (-0.31%)
MSFT   369.16 (-0.90%)
META   319.23 (+0.30%)
GOOGL   130.41 (-0.44%)
AMZN   145.60 (-0.87%)
TSLA   242.77 (+1.70%)
NVDA   459.29 (-1.37%)
NIO   7.89 (+6.19%)
BABA   72.07 (-0.43%)
AMD   118.33 (-0.04%)
T   16.96 (-1.51%)
F   10.76 (+1.51%)
MU   73.57 (-0.16%)
CGC   0.68 (+1.94%)
GE   120.53 (+0.25%)
DIS   92.01 (+1.34%)
AMC   6.96 (-0.85%)
PFE   29.08 (-0.03%)
PYPL   59.82 (+3.28%)
XOM   99.06 (-1.37%)
S&P 500   4,564.95 (-0.05%)
DOW   36,172.58 (+0.13%)
QQQ   386.53 (-0.20%)
AAPL   192.83 (-0.31%)
MSFT   369.16 (-0.90%)
META   319.23 (+0.30%)
GOOGL   130.41 (-0.44%)
AMZN   145.60 (-0.87%)
TSLA   242.77 (+1.70%)
NVDA   459.29 (-1.37%)
NIO   7.89 (+6.19%)
BABA   72.07 (-0.43%)
AMD   118.33 (-0.04%)
T   16.96 (-1.51%)
F   10.76 (+1.51%)
MU   73.57 (-0.16%)
CGC   0.68 (+1.94%)
GE   120.53 (+0.25%)
DIS   92.01 (+1.34%)
AMC   6.96 (-0.85%)
PFE   29.08 (-0.03%)
PYPL   59.82 (+3.28%)
XOM   99.06 (-1.37%)
S&P 500   4,564.95 (-0.05%)
DOW   36,172.58 (+0.13%)
QQQ   386.53 (-0.20%)
AAPL   192.83 (-0.31%)
MSFT   369.16 (-0.90%)
META   319.23 (+0.30%)
GOOGL   130.41 (-0.44%)
AMZN   145.60 (-0.87%)
TSLA   242.77 (+1.70%)
NVDA   459.29 (-1.37%)
NIO   7.89 (+6.19%)
BABA   72.07 (-0.43%)
AMD   118.33 (-0.04%)
T   16.96 (-1.51%)
F   10.76 (+1.51%)
MU   73.57 (-0.16%)
CGC   0.68 (+1.94%)
GE   120.53 (+0.25%)
DIS   92.01 (+1.34%)
AMC   6.96 (-0.85%)
PFE   29.08 (-0.03%)
PYPL   59.82 (+3.28%)
XOM   99.06 (-1.37%)
S&P 500   4,564.95 (-0.05%)
DOW   36,172.58 (+0.13%)
QQQ   386.53 (-0.20%)
AAPL   192.83 (-0.31%)
MSFT   369.16 (-0.90%)
META   319.23 (+0.30%)
GOOGL   130.41 (-0.44%)
AMZN   145.60 (-0.87%)
TSLA   242.77 (+1.70%)
NVDA   459.29 (-1.37%)
NIO   7.89 (+6.19%)
BABA   72.07 (-0.43%)
AMD   118.33 (-0.04%)
T   16.96 (-1.51%)
F   10.76 (+1.51%)
MU   73.57 (-0.16%)
CGC   0.68 (+1.94%)
GE   120.53 (+0.25%)
DIS   92.01 (+1.34%)
AMC   6.96 (-0.85%)
PFE   29.08 (-0.03%)
PYPL   59.82 (+3.28%)
XOM   99.06 (-1.37%)

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.

MarketRank™ evaluates a company based on dividend strength, earnings, valuation, analysts forecasts, and more.
Available with a MarketBeat All Access Subscription
MarketRank™Upgrade to All Access to use the All Ranks Filter
Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week.
Available with a MarketBeat All Access Subscription
Media SentimentUpgrade to All Access to use the All Sentiments Filter
Analyst consensus is the average investment recommendation among Wall Street research analysts.
Available with a MarketBeat All Access Subscription
Analyst ConsensusUpgrade to All Access to use the All Ratings Filter
CompanyCurrent PriceVolume GrowthVolumeAverage VolumeDollar VolumeIndicator(s)
JPMorgan Global Select Equity ETF stock logo
JPMorgan Global Select Equity ETF
+20,087.1%18,77493$943,956.72News Coverage
Sera Prognostics, Inc. stock logo
Sera Prognostics
+10,179.9%69.46 million675,668$482.04 millionGap Up
Kamada Ltd. stock logo
+5,380.7%2.12 million38,726$12.42 millionNegative News
Gap Up
Greenbrook TMS Inc. stock logo
Greenbrook TMS
+4,160.1%18.37 million431,296$4.82 millionNews Coverage
Positive News
Gap Up
MicroAlgo Inc. stock logo
+3,811.3%50.98 million1.30 million$301.28 millionNews Coverage
Positive News
Gap Up
HMN Financial, Inc. stock logo
HMN Financial
+3,724.9%156,7434,098$2.82 millionPositive News
Syros Pharmaceuticals, Inc. stock logo
Syros Pharmaceuticals
+3,073.5%3.15 million99,274$12.03 millionNews Coverage
Gap Up
Pharvaris stock logo
+2,745.0%1.46 million51,367$39.46 millionNews Coverage
Gap Up
Dune Acquisition Co. stock logo
Dune Acquisition
+2,387.7%425,21617,093$1.97 millionNews Coverage
Orion Energy Systems, Inc. stock logo
Orion Energy Systems
+2,203.8%1.39 million60,382$1.24 millionAnalyst Report
Gap Down
ImmunoPrecise Antibodies Ltd. stock logo
ImmunoPrecise Antibodies
+2,133.7%1.49 million66,500$1.81 millionNews Coverage
Gap Down
iShares ESG MSCI EM Leaders ETF stock logo
iShares ESG MSCI EM Leaders ETF
+2,095.0%191,3168,716$8.26 million
Principal Value ETF stock logo
Principal Value ETF
+1,987.7%204,1379,778$8.45 million
Principal Quality ETF stock logo
Principal Quality ETF
+1,664.8%87,6914,969$5.12 million
Altimmune, Inc. stock logo
+1,430.9%38.22 million2.50 million$265.23 millionGap Up
Chanson International Holding stock logo
Chanson International
+1,372.0%5.72 million388,704$35.76 millionShort Interest ↑
News Coverage
Gap Up
Trading Halted
SIFCO Industries, Inc. stock logo
SIFCO Industries
+1,344.7%140,5269,727$571,940.82Gap Down
Sphere 3D Corp. stock logo
Sphere 3D
+1,117.1%4.39 million360,852$7.47 millionNews Coverage
Gap Down
Erasca, Inc. stock logo
+989.8%9.06 million831,191$16.67 millionGap Up
Clean Earth Acquisitions
+915.2%728,13771,720$4.91 millionGap Up
Sphere Entertainment Co. stock logo
Sphere Entertainment
+811.1%5.80 million636,188$177.20 millionAnalyst Upgrade
News Coverage
Principal U.S. Small-Cap Multi-Factor ETF stock logo
Principal U.S. Small-Cap Multi-Factor ETF
+768.4%264,27330,432$11.22 millionNews Coverage
Merit Medical Systems, Inc. stock logo
Merit Medical Systems
+762.5%2.70 million312,736$184.15 millionNews Coverage
Five Point Holdings, LLC stock logo
Five Point
+709.5%636,97778,691$1.66 millionNegative News
EyePoint Pharmaceuticals, Inc. stock logo
EyePoint Pharmaceuticals
+697.2%5.91 million741,486$120.94 millionAnalyst Report
News Coverage
First Trust RiverFront Dynamic Emerging Markets ETF stock logo
First Trust RiverFront Dynamic Emerging Markets ETF
+670.8%32,6804,240$1.86 million
Vince Holding Corp. stock logo
+668.9%42,8915,578$54,042.66News Coverage
Olema Pharmaceuticals, Inc. stock logo
Olema Pharmaceuticals
+658.7%2.62 million345,664$30.32 millionNews Coverage
Webuy Global Ltd stock logo
Webuy Global
+629.2%3.91 million536,677$31.46 millionNews Coverage
Gap Up
Spree Acquisition Corp. 1
+591.0%657,37195,137$7.18 millionUpcoming Earnings
Broad Capital Acquisition Corp stock logo
Broad Capital Acquisition
+588.5%184,49626,797$2.03 millionPositive News
Incannex Healthcare Limited stock logo
Incannex Healthcare
+581.6%355,49252,158$2.58 millionGap Down
Trading Halted
Atour Lifestyle Holdings Limited stock logo
Atour Lifestyle
+579.3%2.46 million362,589$40.32 millionNews Coverage
Gap Up
Black Mountain Acquisition Corp. stock logo
Black Mountain Acquisition
+564.2%574,77686,531$6.09 million
Anixa Biosciences, Inc. stock logo
Anixa Biosciences
+535.2%477,22275,125$1.93 millionPositive News
Zalatoris II Acquisition
+527.6%773,987123,327$8.24 millionPositive News
Century Therapeutics, Inc. stock logo
Century Therapeutics
+525.5%870,168139,113$1.79 millionNews Coverage
Gap Up
Fluence Energy, Inc. stock logo
Fluence Energy
+495.2%7.90 million1.33 million$176.05 millionEarnings Report
Analyst Upgrade
News Coverage
Positive News
Gap Down
Brainstorm Cell Therapeutics Inc. stock logo
Brainstorm Cell Therapeutics
+473.2%6.07 million1.06 million$1.77 millionAnalyst Report
Short Interest ↑
trivago stock logo
+466.0%505,41189,293$1.21 million
Cazoo Group Ltd stock logo
Cazoo Group
+463.1%11,5322,048$392,088.00Stock Split
News Coverage
Positive News
Gap Up
Principal U.S. Mega-Cap ETF stock logo
Principal U.S. Mega-Cap ETF
+461.9%402,65071,660$18.16 million
Cano Health, Inc. stock logo
Cano Health
+460.6%620,222110,640$7.05 millionGap Up
Eagle Bancorp Montana, Inc. stock logo
Eagle Bancorp Montana
111, Inc. stock logo
+441.2%469,70386,793$728,039.65Earnings Report
Gap Down
First Trust Latin America AlphaDEX Fund stock logo
First Trust Latin America AlphaDEX Fund
+440.1%88,67416,417$1.75 million
Evolent Health, Inc. stock logo
Evolent Health
+419.6%5.68 million1.09 million$157.68 millionAnalyst Report
News Coverage
Gap Up
LifeStance Health Group, Inc. stock logo
LifeStance Health Group
+412.1%3.82 million745,323$25.27 millionInsider Selling
Yalla Group Limited stock logo
Yalla Group
+394.0%1.04 million210,438$6.46 millionPositive News
Gap Up
Canaan Inc. stock logo
+391.3%13.12 million2.67 million$20.76 millionGap Up
JPMorgan Equity Focus ETF
+361.2%121,57526,359$6.15 million
BrandywineGLOBALDynamic US Large Cap Value ETF
+355.0%93,74320,604$1.12 million
John Wiley & Sons, Inc. stock logo
John Wiley & Sons
+348.1%3,383755$101,523.83News Coverage
Invesco BulletShares 2029 High Yield Corporate Bond ETF
British American Tobacco p.l.c. stock logo
British American Tobacco
+334.1%17.13 million3.95 million$493.78 millionGap Down
Adagene Inc. stock logo
+332.4%87,61820,263$154,216.44Positive News
Cool Company Ltd. stock logo
+330.6%498,300115,712$5.92 millionGap Down
Robinhood Markets, Inc. stock logo
Robinhood Markets
+329.3%35.70 million8.31 million$403.36 millionGap Up
Nisun International Enterprise Development Group Co., Ltd stock logo
Nisun International Enterprise Development Group
The Central and Eastern Europe Fund, Inc. stock logo
The Central and Eastern Europe Fund
SilverSun Technologies, Inc. stock logo
SilverSun Technologies
+323.3%871,183205,795$6.93 million
AquaBounty Technologies, Inc. stock logo
AquaBounty Technologies
Oak Woods Acquisition
+318.7%180,91443,207$1.90 millionPositive News
Purple Innovation, Inc. stock logo
Purple Innovation
+317.4%4.44 million1.06 million$6.07 millionPositive News
Bitdeer Technologies Group stock logo
Bitdeer Technologies Group
+314.1%998,991241,266$5.75 millionGap Up
AeroVironment, Inc. stock logo
+313.3%922,348223,165$117.48 millionEarnings Report
News Coverage
Gap Down
Indivior PLC stock logo
+306.8%45,45211,172$682,234.52News Coverage
Gap Down
Blackstone Mortgage Trust, Inc. stock logo
Blackstone Mortgage Trust
+301.5%10.83 million2.70 million$228.93 millionAnalyst Report
Short Interest ↓
News Coverage
OptiNose, Inc. stock logo
+299.5%1.41 million353,535$1.68 millionNews Coverage
Gap Down
Collective Audience, Inc. stock logo
Collective Audience
+288.9%1.73 million445,973$3.30 million
Checkpoint Therapeutics, Inc. stock logo
Checkpoint Therapeutics
+288.3%1.13 million290,697$3.70 million
U Power Limited stock logo
U Power
+288.2%9.84 million2.53 million$4.28 millionGap Down
MyMD Pharmaceuticals, Inc. stock logo
MyMD Pharmaceuticals
+283.7%2.28 million594,996$643,857.89
Phreesia, Inc. stock logo
+279.1%1.76 million464,223$31.41 millionEarnings Report
Analyst Report
News Coverage
Gap Up
Micromobility.com Inc. stock logo
+274.1%673,075179,915$757,209.38Stock Split
Cerevel Therapeutics Holdings, Inc. stock logo
Cerevel Therapeutics
+271.2%2.77 million747,109$101.36 millionOptions Volume
News Coverage
Gap Up
Culp, Inc. stock logo
+270.8%67,27818,142$349,845.60Earnings Report
News Coverage
Arvinas, Inc. stock logo
+270.0%1.80 million486,311$54.18 millionAnalyst Upgrade
Gap Up
Mesa Air Group, Inc. stock logo
Mesa Air Group
+267.7%1.37 million373,297$1.65 million
Bio-Rad Laboratories, Inc. stock logo
Bio-Rad Laboratories
Equillium, Inc. stock logo
+255.0%574,178161,726$350,191.16Gap Up
Asana, Inc. stock logo
+254.1%9.77 million2.76 million$191.22 millionEarnings Report
Analyst Report
Options Volume
News Coverage
Gap Down
Rover Group, Inc. stock logo
Rover Group
+251.8%4.17 million1.19 million$45.38 millionInsider Selling
10X Capital Venture Acquisition Corp. II stock logo
10X Capital Venture Acquisition Corp. II
+246.5%57,17616,503$447,688.08News Coverage
Gap Up
Trailblazer Merger Co. I
+246.2%134,36238,810$1.40 million
Safety Shot, Inc. stock logo
Safety Shot
+245.0%6.99 million2.03 million$25.39 millionGap Down
Riverview Bancorp, Inc. stock logo
Riverview Bancorp
Golden Arrow Merger Corp. stock logo
Golden Arrow Merger
+244.0%113,21132,914$1.19 million
Dyadic International, Inc. stock logo
Dyadic International
+243.1%96,09828,010$159,330.48Positive News
Yext, Inc. stock logo
+242.5%4.51 million1.32 million$25.00 millionEarnings Report
News Coverage
Gap Down
BioCryst Pharmaceuticals, Inc. stock logo
BioCryst Pharmaceuticals
+241.6%9.82 million2.87 million$54.59 millionPositive News
Gap Down
CASI Pharmaceuticals, Inc. stock logo
CASI Pharmaceuticals
+240.1%108,82631,998$700,839.44Gap Up
Bitfarms Ltd. stock logo
+234.7%26.99 million8.07 million$52.63 millionGap Up
1895 Bancorp of Wisconsin, Inc. stock logo
1895 Bancorp of Wisconsin
+233.1%18,6005,584$119,040.00Positive News
Replimune Group, Inc. stock logo
Replimune Group
+232.7%2.28 million686,789$16.82 millionAnalyst Report
Options Volume
News Coverage
Powell Industries, Inc. stock logo
Powell Industries
+232.3%330,79699,549$26.55 millionNews Coverage
Gap Up
Hut 8 Mining Corp. stock logo
Hut 8 Mining
+232.2%7.36 million2.21 million$75.62 millionOptions Volume
News Coverage
Gap Up
Satellogic Inc. stock logo
Belite Bio, Inc stock logo
Belite Bio
+226.5%204,70162,703$8.59 millionPositive News
NextNav Inc. stock logo
+226.2%1.28 million391,904$4.88 millionPositive News

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


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


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.

More Stock Ideas from MarketBeat

My Account -