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High Relative Volume Scanner

Find stocks with unusually high volume relative to their average - often leads to big moves.

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

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

v / sma(v, 20) > 3 and abs(roc(1)) > 3 and f.market_cap > 1B
  • 3x volume (very rare)
  • 3%+ move (significant)
  • Large caps only

Early Detection (Lower Threshold)

v / sma(v, 20) > 1.5 and abs(roc(1)) > 0.5 and f.market_cap > 500M
  • Catches developing situations earlier
  • More signals but noisier

Bullish Only

v / sma(v, 20) > 2 and roc(1) > 1 and c > sma(20) and f.market_cap > 500M
  • Remove abs() to only find upside moves
  • Must be above 20-day MA (uptrend)

Small-Cap Focused

v / sma(v, 20) > 2 and abs(roc(1)) > 2 and f.market_cap > 100M and f.market_cap < 2B
  • Small to mid-cap range
  • More volatile, higher risk/reward

Example Columns to Add

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

Interpreting Results

RVOL Levels

RVOLMeaningAction
1.5-2xElevatedMonitor, research catalyst
2-3xHighLikely significant, investigate
3-5xVery HighMajor news/event, trade carefully
5x+ExtremeHuge catalyst, high volatility

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)

v / 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)

v / sma(v, 20) > 2 and abs(roc(1)) > 1
  • Standard scan
  • Most activity happens here

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

v / 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)

v / 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

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

Momentum positive but not overbought

RVOL + Moving Averages

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

Volume spike in established uptrend

RVOL + MACD

v / 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.

On this page
What It DetectsThe FormulaHow It WorksWhen to UseWhy Relative Volume MattersAbsolute vs RelativeWhat High RVOL MeansParameters You Can TweakExtreme VolumeEarly Detection (Lower Threshold)Bullish OnlySmall-Cap FocusedExample Columns to AddInterpreting ResultsRVOL LevelsVolume + Price ContextTrading StrategiesMomentum Entry (Intraday)Swing Entry (Multi-day)Avoid Entry (Red Flags)What to Watch ForResearch ChecklistIntraday UsagePre-Market Scan (Before 9:30am)First 30 Minutes (9:30-10:00am)Mid-Day Scan (11:00am-2:00pm)Power Hour (3:00-4:00pm)Common MistakesCombining with Other IndicatorsRVOL + RSIRVOL + Moving AveragesRVOL + MACDHistorical ContextCompare to Past SpikesVolume ProfileRelated StrategiesPro TipsAdvanced: RVOL by Time of Day
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