Trading Stocks With Unusual Volume

Traders watch for unusual volume stocks because they are often accompanied by large price movements. Increased volume flows are correlated with volatility. A heightened volume indicates something is going on today and that the stock is “in play”. A stock moving up on unusually high volume typically signifies an outsized demand to own the stock.

Let’s review some of the recent examples below.

ROKU

ROKU stock exploded higher on rising volume into the session end on 16 June’20. The average price was $117 as shown on the chart below.

ROKU, 1m

Two days later, the stock went up by almost 13% and traded as high as $129.

ROKU, 1d

SPOT

SPOT exploded higher on rising volume into the session end on 17 June’20. The average price was $195 as shown on the chart below.

SPOT, 1m

The next day, the stock went up by almost 12% and traded as high as $229.

SPOT, 1d

CLDR

CLDR exploded higher on rising volume in the middle of the session. The average price was $11.5 as shown on the chart below.

CLDR, 1m

Over the next several days, the stock went up by almost 21% and traded as high as $13.9.

CLDR, 1d

FSLY

FSLY exploded higher on rising volume in the middle of the session. The average price was $47.5 as shown on the chart below.

FSLY, 1m

During the next several days, the stock went up by almost 37% and traded as high as $65.

FSLY, 1d

MU

MU exploded higher on rising volume in the middle of the session. The price was $45 when the news hit the market and went up to almost $50 in several hours.

MU, 1m

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