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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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:
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Check global cues like the US market performance, Asian indices, and commodities.
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Review corporate announcements such as results, mergers, or management commentary.
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Scan for pre-market movers on your trading platform.
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Note down stocks with unusually high pre-market volume.
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:
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Volume shockers: Stocks trading at 2–3 times their average daily volume.
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Price + volume breakout: Stocks breaking resistance with strong volume support.
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Unusual options activity: For F&O traders, derivatives data confirms underlying stock action.
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Relative volume ratio: Current volume compared to average 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:
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Has the stock sustained high volume, or was it a one-off spike?
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Is the stock trending in line with broader market sentiment?
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Are volumes concentrated in large-cap or mid-cap names today?
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:
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VWAP (Volume Weighted Average Price): Helps gauge institutional activity.
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OBV (On Balance Volume): Confirms whether volume supports price direction.
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Volume Moving Average: Smooths out spikes and helps spot unusual surges.
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:
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Which stocks actually sustained high volume throughout the day?
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Did the volume lead to meaningful price action or fizzle out?
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What patterns repeated (sector-specific moves, news-driven surges)?
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Log trades and update your journal.
This not only builds discipline but also helps you spot recurring high-volume opportunities.
Best Practices for Scanning High-Volume Opportunities
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.
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