What are important levels of stock trading volume ?
How you can decide that current stock is trading with important or abnormal stock volume
When I see strong stock trading volume for particular stock in my watch list I am more confident about entering trade. I feel much better. But how one can decide that todays volume is important or abnormal stock trading volume ? I personally use this technique. I use free stock trading software
Quotetracker
for monitoring interesting stocks during trading day.
Here is basic info about this setup.
The most important column I monitor is Vol%. What I like to see is that stock must present bigger volume then most of other stocks in my watch list. Very good is also to compare every stock with current volume level of QQQQ stock. This ETF is heavy traded instrument. So if I can see stock with current volume level near current QQQQ stock trading volume level or above this level, I am preparing for action or starting to monitor stock much closely. Here are some examples 1. Watch list after first trading hour - please notice as CG and CVA stocks are trading already above QQQQ stock volume level.
2. One hour later - CG and CVA are presenting huge volume
3. And finally before close of markets. Abnormal stock volume levels are confirmed for CG and CVA stocks.
Return from Stock trading volume to stock chart analysis

|