Most Efficient Way to Identify Stocks With Volume Spike

[frcrilly]

Hi Guys,

I have been told that there is an indicator called “Volume Spike”. It theoretically occurs when the volume of a stock traded on one day is 3 or more times the volume traded for that stock on the previous day. It’s supposed to indicate that a stock is about to move significantly in one direction or the other. (of course, it’s not guaranteed).

On every trading day (after hours), I am looking to identify all stocks on that day that meet this criteria. Can anyone suggest an efficient way to do this with reliable information. (eg by free or cheap software or by website download).

All help in this matter will be greatly appreciated. Thanks In Advance for all Responses.

[mike_d]

Just look for a stock screener online and include in the variable; recent volume vs. past volume.

[MarcusHo]

Just look for a stock screener online and include in the variable; recent volume vs. past volume.

I agree with mike_d, there's a lot of places that you can get this info. Try looking at market watch or yahoo finance for it.

[Trang]

I checked and compared some websites...This seems to be the best available...
Advanced Stock Screener with Backtesting - Market In&Out (http://www.marketinout.com)
My first impression is that this website is cool because there are huge amount of screens including thomas demark, ichimoku, macd&rsi diveregnces, fibonacci, etc. I can test my trading systems by using strategy backtesting tool which gives the ability to setup parameters like open/close signals, s/l, t/p.

[LGoasy]

On Volume Spikes

Sometimes these are a trap. Check out the attached shot of LED maker Aixtron SE (NASDAQ: AIXG).

On 4-11-2011 the stock closed up 9.97% at $16.43 on more than 4-times normal volume with 2.11 million shares traded versus a 52-week range of $12.49 to $44.96 - a clear volume spike. It was reacting to the news that China would be phasing out traditional incandescent lights and replacing with LEDs.

But smart money sold into the strength - and the stock sold off. It's another matter that the blowout may have indicated that the end of the downtrend was near.

Nevertheless, it is always wise to check out these volume spikes using a screener and EOD data.http://stockcharts.com/h-sc/ui?s=aixg

[jupiter12]

Hi Guys,

I have been told that there is an indicator called “Volume Spike”. It theoretically occurs when the volume of a stock traded on one day is 3 or more times the volume traded for that stock on the previous day. It’s supposed to indicate that a stock is about to move significantly in one direction or the other. (of course, it’s not guaranteed).

On every trading day (after hours), I am looking to identify all stocks on that day that meet this criteria. Can anyone suggest an efficient way to do this with reliable information. (eg by free or cheap software or by website download).

All help in this matter will be greatly appreciated. Thanks In Advance for all Responses.

Stock screeners suggest "Unusual Volume" criteria for that or "Rising/Falling on Unusual Volume". There are also an ability to backtest this strategy on history.