By MOFSL
2025-09-16T08:56:00.000Z
6 mins read
Daily Trading Routine: How to Scan for High Volume Opportunities
motilal-oswal:tags/hvt,motilal-oswal:tags/options-trading,motilal-oswal:tags/options-trading-in-india
2025-09-16T08:56:00.000Z

Scan for High Volume Opportunities

One crucial measure of a stock's strength and sturdiness within the unstable international of stock markets is trading volume. High volume frequently attests to the fact that actual marketplace involvement supports charge fluctuations. Finding equities with abnormally high volumes can offer intraday and swing buyers with moneymaking trading opportunities. However, it takes a deliberate day-by-day agenda to frequently locate these stocks. Traders may get rid of noise and deal with possibilities by adopting a disciplined method. Let's have a look at a methodical technique to try to find high-volume stocks.

Why Volume Matters in Trading

The overall quantity of stocks exchanged in a stock during a certain time period is known as volume, and it indicates market activity. It aids investors in figuring out power via reflecting the involvement and interests of consumers and sellers. Robust confidence in the back of fee actions is often indicated by higher-than-common volume, which will increase the dependability of developments. Low-volume stocks might be unpredictable, at the same time as high-volume stocks are greater liquid and make entering and exiting less difficult. All matters considered, volume serves as a confirmation tool that verifies price activity and directs more shrewd trading selections.

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Aspect
Low Volume Stock
High Volume Stock
Liquidity
Limited buyers/sellers
Easier entry and exit
Volatility
Often low, erratic
More predictable
Signal Strength
Weak confirmation
Stronger confirmation
Suitability
Not ideal for day trading
Best for intraday/swing

Step 1: Start with Pre-Market Preparation

A successful trading routine begins even before the markets open. Pre-market analysis helps you shortlist potential stocks based on news, earnings, and sector movements.

Key tasks in pre-market preparation:

Pre-Market Scanner Checklist
Why It’s Important
Earnings announcements
Cause price & volume spikes
Sector news
Brings group-wide opportunities
Bulk/block deals
Signals institutional interest
Global market impact
Drives sentiment in specific sectors

This gives you a strong watchlist for the day.

Step 2: Use Technical Scanners for High Volume Stocks

After the market opens, traders rely on technical scanners or screener tools to identify stocks witnessing sudden surges in trading volume.

Popular screening methods include:

Scanner Type
Criteria
Example Output
Volume shocker
Volume > 3x 20-day average
Stock A: 8M vs 2M avg
Breakout filter
Price > resistance + volume spike
Stock B crosses ₹500 with heavy volumes
Relative Volume
RVOL > 2
Stock C trades 2.5x usual volume

By focusing on stocks where both price and volume align, you filter out noise and zero in on quality opportunities.

Step 3: Midday Review – Avoid Overtrading

Many traders make the mistake of chasing every spike they see on screen. Instead, discipline is key. Around midday, revisit your watchlist and ask:

This checkpoint ensures you filter genuine opportunities from false alarms.

Step 4: Use Technical Indicators Along with Volume

Volume alone is powerful, but combining it with technical indicators provides a stronger edge.

Best indicators to pair with volume:

Indicator
Purpose
Trading Insight
VWAP
Average price weighted by volume
Stock above VWAP with volume = bullish
OBV
Cumulative volume flow
Rising OBV + rising price = strong trend
Volume MA
Average over a set period
Spikes above average = breakout alert

A combination approach ensures you don’t rely on volume in isolation.

Step 5: End-of-Day (EOD) Analysis

At the close of the trading day, reviewing performance is essential for refining your routine. EOD analysis helps you build consistency.

EOD checklist:

This not only builds discipline but also helps you spot recurring high-volume opportunities.

Best Practices for Scanning High-Volume Opportunities

Best Practice
Description
Set alerts for volume breakouts
To make sure you do not pass up important opportunities, use your trading software to get indicators when a stock's extent rises over a certain level.
Focus on liquid stocks
Stocks with high average daily turnover should receive priority on the grounds that they offer better liquidity and greater seamless access and exit points.
Avoid penny stocks
Keep away from penny or small-cap shares to lower risk since they will showcase a deceptively high quantity due to their poor liquidity.
Combine fundamentals and technicals
Use technical indicators in addition to financial health to make sure that a high-volume move is supported through sound market judgment.
Stick to your trading plan
Be disciplined and refrain from chasing each spike; instead, keep on with a defined, consistent plan.

Conclusion

The primary indication that state-of-the-art cash is stepping into or out of an inventory is regularly high trading activity. You can frequently become aware of and take advantage of high-volume opportunities by establishing a disciplined daily trading practice that consists of the entirety from pre-marketplace preparation and real-time scanners to lunchtime critiques and EOD analysis. Remember the fact that while volume is a powerful instrument, it functions best when paired with subject, price action, and market context. Gaining insight will allow you to distinguish between actual setups and noise, with the intention of coming up with an advantage within the fast-paced world of stock trading.

Understand Better - High Volume Trading Strategies | Volume-Based Trading Strategies | Role of VWAP | Backtest Volume-Based Trading Strategies | Mistakes Traders make while using Volume

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