When to use this
- You want early warning when a name starts trading abnormally
- You track names where a volume spike would prompt you to dig in
- You want to catch developing situations before they hit the headlines
Define “unusual” against a baseline
Volume only means something relative to a name’s normal. Frame the trigger as a multiple of average, not a raw number:Read volume together with price and flow
Raw volume is only half the signal. A spike is a question — pair it with the cause and the direction:Example variations
A watchlist volume monitor:Common mistakes
- No baseline. “High volume” means nothing without an average to compare against. Frame it as a multiple of normal.
- Spikes without explanation. Always have the monitor look for the cause; raw volume is only half the signal.
- Acting on the spike alone. Volume tells you to look; it does not tell you to buy or sell.
Related
- Set up watchlist monitoring — the general monitoring mechanics this guide builds on
- Smart Money — characterize who’s behind the volume
- Scheduled task prompts — more templates