High Relative Volume Scanner

What It Detects

Stocks with:

• Volume significantly higher than their average
• Price moving (not just churning)
• High relative volume (RVOL)
• Institutional interest or catalyst-driven activity

The Formula

Copyv / sma(v, 20) > 2 and abs(roc(1)) > 1 and market_cap > 500M

How It Works

1. v / sma(v, 20) > 2 - Today's volume is 2x the 20-day average (relative volume)
2. abs(roc(1)) > 1 - Price moved at least 1% (volume with direction)
3. market_cap > 500M - Mid-cap and larger (institutional grade)

This finds liquid stocks with unusual activity.

When to Use

Best for:

• Pre-market research (find stocks "in play")
• Intraday momentum trading
• Swing trading entries
• Finding news-driven opportunities

Avoid when:

• Low float penny stocks (manipulated volume)
• Options expiration day (artificial volume)
• First/last day of month (rebalancing noise)
• Individual stock earnings (expected volume)

Why Relative Volume Matters

Absolute vs Relative

Bad: Stock trades 10M shares (sounds high)
Good: Stock trades 10M shares vs 2M average = 5x RVOL (very unusual!)

Always compare to the stock's norm, not other stocks.

What High RVOL Means

• Institutions accumulating/distributing
• News catalyst (earnings, FDA approval, acquisition)
• Technical breakout confirmed
• Algo/momentum traders involved
• Something changed (find out what!)

Parameters You Can Tweak

Extreme Volume

Copyv / sma(v, 20) > 3 and abs(roc(1)) > 3 and market_cap > 1B

• 3x volume (very rare)
• 3%+ move (significant)
• Large caps only

Early Detection (Lower Threshold)

Copyv / sma(v, 20) > 1.5 and abs(roc(1)) > 0.5 and market_cap > 500M

• Catches developing situations earlier
• More signals but noisier

Bullish Only

Copyv / sma(v, 20) > 2 and roc(1) > 1 and c > sma(20) and market_cap > 500M

• Remove abs() to only find upside moves
• Must be above 20-day MA (uptrend)

Small-Cap Focused

Copyv / sma(v, 20) > 2 and abs(roc(1)) > 2 and market_cap > 100M and market_cap < 2B

• Small to mid-cap range
• More volatile, higher risk/reward

Example Columns to Add

CopyPrice: c
Chg%: roc(1)
Volume: v
Avg Vol: sma(v, 20)
Rel Vol (RVOL): v / sma(v, 20)
Mkt Cap: market_cap
50MA: sma(50)
RSI: rsi(14)

Interpreting Results

RVOL Levels

Volume + Price Context

High RVOL + Breakout: Bullish

• Volume confirms price move
• Entry on pullback

High RVOL + Breakdown: Bearish

• Distribution, selling pressure
• Avoid or short

High RVOL + Sideways: Churn

• Institutions battling
• Wait for direction

Trading Strategies

Momentum Entry (Intraday)

1. Scan finds high RVOL stock
2. Check for catalyst (news, earnings, sector)
3. Watch for entry:
   • Pullback to VWAP
   • Break of opening range
   • Consolidation after initial move
4. Enter with tight stop (2-3%)
5. Take profits into strength

Swing Entry (Multi-day)

1. High RVOL appears on scan
2. Volume spike confirms breakout
3. Wait for end-of-day close
4. Enter next morning if:
   • Holding gains
   • Pre-market showing strength
   • No negative news
5. Wider stop (5-7%)

Avoid Entry (Red Flags)

• Spike on bad news (more downside likely)
• Multiple RVOL spikes recently (overextended)
• Volume but no price follow-through (churning)
• Low float stock (pump risk)

What to Watch For

Strong signals:

• First high RVOL after weeks of quiet trading
• Volume spike on technical breakout
• Sector showing strength (not isolated)
• Pre-market volume also elevated
• Institutional buying (check dark pool prints)

Warning signs:

• Repeated high RVOL (exhaustion)
• Volume spike on bad news (more selling coming)
• Low market cap + sudden volume (manipulation?)
• Extended price (RSI > 75)
• No identifiable catalyst (suspicious)

Research Checklist

When high RVOL appears:

1. ✅ Check news (Bloomberg, Reuters, company PR)
2. ✅ Unusual options activity? (high call/put volume)
3. ✅ Insider buying/selling? (SEC filings)
4. ✅ Short interest high? (potential squeeze)
5. ✅ Sector move or stock-specific?
6. ✅ Technical level (breakout, breakdown, support, resistance)?

Intraday Usage

Pre-Market Scan (Before 9:30am)

Copyv / sma(v, 20) > 1.5 and abs(roc(1)) > 1

• Lower threshold (less data)
• Identifies stocks to watch at open

First 30 Minutes (9:30-10:00am)

Copyv / sma(v, 20) > 2 and abs(roc(1)) > 1

• Standard scan
• Most activity happens here

Mid-Day Scan (11:00am-2:00pm)

Copyv / sma(v, 20) > 2.5 and abs(roc(1)) > 1.5

• Higher threshold (mid-day usually quiet)
• When found, often continuation move

Power Hour (3:00-4:00pm)

Copyv / sma(v, 20) > 2 and abs(roc(1)) > 1

• End-of-day positioning
• Can signal next-day continuation

Common Mistakes

1. Chasing the spike - Enter early (pullback) not late (extended)
2. Ignoring the catalyst - Know WHY volume spiked
3. Overtrading - Not every high RVOL is tradeable
4. No stop loss - High volume = high volatility = need stops
5. Holding too long - Volume spikes are often 1-3 day events
6. Small caps only - Large caps with high RVOL are safer
7. Buying bad news - Volume on negative catalyst = more downside

Combining with Other Indicators

RVOL + RSI

Copyv / sma(v, 20) > 2 and roc(1) > 1 and rsi(14) > 50 and rsi(14) < 70

Momentum positive but not overbought

RVOL + Moving Averages

Copyv / sma(v, 20) > 2 and roc(1) > 1 and c > sma(20) and sma(20) > sma(50)

Volume spike in established uptrend

RVOL + MACD

Copyv / sma(v, 20) > 2 and roc(1) > 1 and macd() > macd_signal()

Volume confirms momentum crossover

Historical Context

Compare to Past Spikes

Before trading:

1. Check volume chart (1-year view)
2. See how stock behaved after previous spikes
3. Pattern repeater? (some stocks pump repeatedly)
4. One-time events? (acquisitions, FDA approvals)

Volume Profile

• Accumulation: Multiple days of above-average volume with rising price
• Distribution: Multiple days of above-average volume with falling price
• Climax: Single extreme volume day (often marks top/bottom)

Related Strategies

• Volume Spike - Similar concept, different focus
• Momentum Breakout - Use volume for confirmation
• Oversold Bounce - Volume spike = capitulation

Pro Tips

• Best time: First 2 hours of market open
• News scan: Always check why volume spiked before trading
• Watchlist: Save high RVOL stocks for next day (often continuation)
• Percentage gainers list: High RVOL stocks usually appear here too
• Dark pool: Check unusual dark pool activity (institutions)
• Options flow: High RVOL often accompanies unusual options activity
• Float: Lower float = bigger impact from same absolute volume
• Sector check: If multiple stocks in sector spike, sector move (safer)
• ATH watch: High RVOL at all-time highs often signals parabolic top

Advanced: RVOL by Time of Day

True RVOL accounts for time:

• 10:00am: Expected to have ~15% of daily volume
• 12:00pm: Expected to have ~35% of daily volume
• 3:00pm: Expected to have ~80% of daily volume

If stock has 50% of average volume by 10am = very high RVOL!

Some scanners offer "RVol by Time" but our simplified version works well for end-of-day scanning.