What are the important levels of stock trading volume?How you can decide that the current stock is trading with important or abnormal stock volumeWhen I see strong stock trading volume for a particular stock in my watchlist, I’m more confident about entering trade. 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.
 2. One hour later - CG and CVA present huge volume  3. And finally, before the close of the markets. Abnormal stock volume levels are confirmed for CG and CVA stocks. 
Return from Stock trading volume to stock chart analysis
|
