October 22,  2014 - Our scanners have detected unusual volume in the securities listed to the left. 

 

The Unusual Volume Scan is an algorithm based scan of a select universe of United States listed stocks to find stocks that have registered Unusual Volume on the daily chart.  This means that on the last trading session these stocks had volume that was at least twice the daily average.  Some of them may have went up, some may have went down, and others may not have done much at all.

 

This isn’t a signal in & of itself unless looked at in conjunction with other signals.  For example, if a stock has been moving down and all of a sudden has huge volume, you have got to wonder who did all that buying and why.  The same is true for a stock that has been moving up.  For every buyer, there is a seller.  And vice versa.  The fact is a lot of shares traded hands, and if the stock is able to continue on in the same direction you have a pretty reliable price and volume combination.

 

Stock chart volume also shows us the amount of liquidity in a stock. Liquidity just simply refers to how easily it is to get in and out of a stock.

If a stock is trading on low volume, then there aren't many traders involved in the stock and it would be more difficult to find a trader to buy from or sell to. In this case, we would say that it is illiquid.

If a stock is trading on high volume, then there are many traders involved in the stock and it would be easier to find a trader to buy from or sell to. In this case, we would say that it is liquid.