Guide
Volume Analysis ranks your watchlist stocks by volume activity over the last 5 days compared to average volume. It shows which stocks are seeing unusual buying/selling participation and confirms trends with OBV (On-Balance Volume).
The 5-day volume trend visualizes each of the last 5 trading days as HIGH, NORM, or LOW relative to the stock's average daily volume.
| Classification | Threshold | Visual color |
|---|---|---|
| HIGH | > 1.5× average volume | Purple bar — strong participation, institutional interest or event-driven |
| NORM | 0.5× to 1.5× average | Gray bar — typical volume, no unusual activity |
| LOW | < 0.5× average volume | Orange bar — weak participation, lack of interest or holiday period |
How to read the bar chart: Each colored segment represents one day. The chart shows the distribution of high/normal/low volume days at a glance.
Example: A stock showing “3H 2N 0L” (3 high, 2 normal, 0 low) had strong volume on 3 of the last 5 days — likely an active stock with news, earnings, or institutional activity.
Each stock is assigned a category based on its 5-day volume pattern:
| Category | Criteria | Typical interpretation |
|---|---|---|
| Surge | 4+ HIGH days out of 5 | Sustained high volume, significant event or strong trend. Institutional participation likely. |
| Elevated | 2-3 HIGH days | Above-average participation, trending or news-driven. Active stock. |
| Normal | Mostly NORM days, <2 HIGH, <2 LOW | Typical volume profile, no unusual activity. Baseline state. |
| Below Average | 2-3 LOW days | Weak participation, consolidation or lack of interest. Low liquidity risk. |
| Dry Up | 4+ LOW days out of 5 | Very low participation, possibly coiling for move or just ignored. Illiquid. |
Volume Score = (HIGH days × 2) + NORM days - LOW days
This simple formula assigns weights to volume days and produces a single number for ranking. Higher scores indicate more sustained high-volume activity.
| Example | Score calculation | Result |
|---|---|---|
| 3 HIGH, 2 NORM, 0 LOW | (3 × 2) + 2 - 0 | 8 (strong) |
| 1 HIGH, 3 NORM, 1 LOW | (1 × 2) + 3 - 1 | 4 (neutral) |
| 0 HIGH, 1 NORM, 4 LOW | (0 × 2) + 1 - 4 | -3 (weak) |
Stocks are ranked by volume score from highest to lowest, making it easy to find the most active stocks at the top of the table.
On-Balance Volume (OBV) is a cumulative indicator that adds volume on up days and subtracts volume on down days.
OBV trend (rising, falling, neutral) shows whether volume is flowing into or out of the stock over time. It is a volume-weighted momentum indicator.
| OBV Trend | What it signals |
|---|---|
| Rising | Volume weighted toward up days. Buying pressure, accumulation. Confirms uptrends. |
| Falling | Volume weighted toward down days. Selling pressure, distribution. Confirms downtrends. |
| Neutral | Volume balanced between up and down days. No clear directional pressure. |
Key insight: OBV divergence from price is powerful. If price rises but OBV falls (or vice versa), it suggests weakening trend strength.
Bullish divergence: Price makes lower lows, OBV makes higher lows → buying on dips, potential reversal.
Bearish divergence: Price makes higher highs, OBV makes lower highs → distribution into strength, potential top.
Finding breakout candidates
Look for “Surge” or “Elevated” category stocks with rising OBV. High volume with accumulation signals strong institutional buying — often precedes sustained moves. Combine with momentum and price near support for best setups.
Confirming trend strength
Check if volume and OBV confirm price trends. Uptrend with rising OBV and elevated volume = strong trend. Uptrend with falling OBV = weak, distribution may be occurring.
Avoiding low-liquidity stocks
Stocks with “Dry Up” category have very low participation. These may have wide bid-ask spreads and slippage. Avoid for large positions or short-term trades unless deliberately entering during accumulation phase.
Volume spikes as alerts
When a typically low-volume stock suddenly shows “Surge” category, investigate. Could signal earnings, news, acquisition rumors, or insider activity. Early detection of volume changes can identify opportunities before they become obvious.
Access Volume Analysis from the Analysis page under the Volume tab.