What are the important levels of stock trading volume?

How you can decide that the current stock is trading with important or abnormal stock volume

But how can you decide that today’s volume is important or an abnormal stock trading volume? I use this technique:

I use the free stock trading software Quotetracker for monitoring interesting stocks during a trading day. Here's basic info about this setup. The most important column I monitor is Vol%.

What I like to see is that the stock must present bigger volume than most of the other stocks in my watchlist.

It’s also very good to compare every stock with a current volume level of QQQQ stock. This ETF is a heavily traded instrument. So if I can see stock with a current volume level near the current QQQQ stock trading volume level or above this level, I prepare for action or start to monitor stock much more closely.

Here are some examples:

1. Watchlist after the first trading hour; please notice as CG and CVA stocks are already trading above the QQQQ stock volume level.

Both stocks are near 50% of average trading volume after 2 trading hours already. They signalize something is happening with them.

Alternative way
for average stock volume monitoring

First there is necessary to find average volume for monitored stock. It is possible to check Yahoo finance site to obtain this info. Here is example for AAPL stock.

These data about average volume level should be put into some spreadsheet and then you can also put there some important levels like 30%,50% and 80% af daily average volume.

Then monitor actual stock volume in your stock broker trading application and compare it with levels you have written in your spreadsheet.

If you find that stock passed 50% level during first or second trading hour you know that something is happening with stock.

Return from Stock trading volume to stock chart analysis