QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)

Stocks with Unusual Volume

Volume mover stocks are companies with the most shares traded during the current trading day relative to their average trading trading volume. A stock may experience above-average trading volume when important new information affecting the stock's valuation is made known to the public. This creates pressure among investors to either buy or sell the stock, leading to heavier trading volume and strong price momentum in the stock. Explanation of average daily trade volume.

MarketRank evaluates a company based on community opinion, dividend strength, institutional and insider ownership, earnings and valuation, and analysts forecasts.
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Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week.
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Analyst consensus is the average investment recommendation among Wall Street research analysts.
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Analyst ConsensusUpgrade to All Access to use the All Ratings Filter
CompanyCurrent PriceVolume GrowthVolumeAverage VolumeDollar VolumeIndicator(s)
Alimera Sciences, Inc. stock logo
ALIM
Alimera Sciences
$2.46
+19.4%
+8,904.8%34.52 million383,304$84.91 millionAnalyst Report
Short Interest ↓
Analyst Revision
News Coverage
Gap Up
Target Global Acquisition I Corp. stock logo
TGAA
Target Global Acquisition I
$10.50
+7,162.9%1.55 million21,341$16.28 million
Eltek Ltd. stock logo
ELTK
Eltek
$5.41
+37.0%
+5,822.9%836,42714,122$4.53 millionAnalyst Report
News Coverage
Gap Up
Trading Halted
Code Chain New Continent Limited stock logo
CCNC
Code Chain New Continent
$6.35
-3.9%
+4,994.2%946,50218,580$6.01 millionGap Down
Urstadt Biddle Properties Inc. stock logo
UBP
Urstadt Biddle Properties
$19.70
+28.4%
+3,183.0%130,0393,961$2.56 millionNews Coverage
Gap Up
Trading Halted
Avalo Therapeutics, Inc. stock logo
AVTX
Avalo Therapeutics
$3.29
+17.9%
+2,023.5%701,53033,037$2.31 millionNews Coverage
Gap Up
OPAL Fuels Inc. stock logo
OPAL
OPAL Fuels
$5.88
-11.3%
+1,757.6%2.15 million115,765$12.64 million
Vivid Seats Inc. stock logo
SEAT
Vivid Seats
$7.65
-7.0%
+1,735.3%7.50 million408,384$57.34 millionAnalyst Report
Gap Down
Urstadt Biddle Properties Inc. stock logo
UBA
Urstadt Biddle Properties
$20.10
+18.6%
+1,660.6%2.46 million139,508$49.37 millionAnalyst Report
News Coverage
Gap Up
Trading Halted
Janux Therapeutics, Inc. stock logo
JANX
Janux Therapeutics
$12.60
+5.0%
+1,423.4%1.94 million127,089$24.39 millionShort Interest ↑
Gates Industrial Corp PLC stock logo
GTES
Gates Industrial
$11.94
-1.0%
+1,403.5%12.68 million843,060$151.35 millionShort Interest ↑
Gap Down
Viracta Therapeutics, Inc. stock logo
VIRX
Viracta Therapeutics
$1.93
+12.9%
+1,377.2%1.80 million121,975$3.48 million
Genesis Unicorn Capital Corp. stock logo
GENQ
Genesis Unicorn Capital
$10.70
+0.1%
+1,301.3%335,23623,924$3.59 million
Tingo Group, Inc. stock logo
TIO
Tingo Group
$4.64
-9.0%
+1,279.7%24.98 million1.81 million$115.92 millionNews Coverage
Gap Up
GSR II Meteora Acquisition Corp. stock logo
GSRM
GSR II Meteora Acquisition
$10.39
+0.0%
+1,245.1%3.86 million286,911$40.08 million
Prelude Therapeutics Incorporated stock logo
PRLD
Prelude Therapeutics
$5.58
-11.4%
+1,228.8%1.08 million81,055$6.01 millionNews Coverage
Gap Down
Lisata Therapeutics, Inc. stock logo
LSTA
Lisata Therapeutics
$4.06
+2.8%
+1,173.6%172,02813,507$698,932.56Positive News
Intapp, Inc. stock logo
INTA
Intapp
$38.99
+4.9%
+1,082.1%3.82 million323,223$148.98 million
GoGreen Investments Co. stock logo
GOGN
GoGreen Investments
$10.70
-0.3%
+1,067.2%1.24 million106,418$13.28 millionNews Coverage
Positive News
Corvus Pharmaceuticals, Inc. stock logo
CRVS
Corvus Pharmaceuticals
$3.25
+0.3%
+1,057.6%5.57 million481,000$18.10 millionAnalyst Report
News Coverage
Gap Up
NanoString Technologies, Inc. stock logo
NSTG
NanoString Technologies
$6.04
-29.0%
+1,020.4%7.81 million697,297$47.19 millionAnalyst Report
Gap Down
Silence Therapeutics plc stock logo
SLN
Silence Therapeutics
$6.03
+10.6%
+1,016.5%676,68760,608$4.08 millionNews Coverage
Positive News
Gap Up
Trading Halted
First US Bancshares, Inc. stock logo
FUSB
First US Bancshares
$6.90
-3.1%
+983.9%57,8695,339$399,296.10Gap Down
WLGS
WANG & LEE GROUP
$1.91
+44.7%
+977.7%34.41 million3.19 million$65.72 millionNews Coverage
Gap Up
Osiris Acquisition Corp. stock logo
OSI
Osiris Acquisition
$9.89
-0.1%
+958.3%155,98614,739$1.54 million
Oconee Federal Financial Corp. stock logo
OFED
Oconee Federal Financial
$19.20
+2.2%
+924.7%24,0902,351$462,528.00Gap Up
Freeline Therapeutics Holdings plc stock logo
FRLN
Freeline Therapeutics
$2.90
+1.8%
+897.7%81,7528,194$237,080.80Upcoming Earnings
Stock Split
Tailwind Two Acquisition Corp. stock logo
TWNT
Tailwind Two Acquisition
$1.50
-3.2%
+895.7%2.21 million222,247$3.32 million
AVROBIO, Inc. stock logo
AVRO
AVROBIO
$0.84
+45.3%
+892.3%10.80 million1.09 million$9.07 millionShort Interest ↓
Analyst Revision
News Coverage
Gap Up
Battery Future Acquisition Corp. stock logo
BFAC
Battery Future Acquisition
$10.52
-0.2%
+873.3%1.50 million154,176$15.79 million
Biocept, Inc. stock logo
BIOC
Biocept
$5.49
+1.8%
+860.6%62,1736,472$341,018.91Stock Split
Gap Down
Latch, Inc. stock logo
LTCH
Latch
$1.02
+9.5%
+792.6%3.62 million405,159$3.69 millionGap Up
First Trust Indxx Innovative Transaction & Process ETF stock logo
LEGR
First Trust Indxx Innovative Transaction & Process ETF
$37.26
+0.0%
+766.9%174,31020,107$6.49 millionPositive News
Fortress Biotech, Inc. stock logo
FBIO
Fortress Biotech
$0.51
-24.5%
+759.2%5.34 million621,362$2.73 millionAnalyst Report
Ahren Acquisition Corp. stock logo
AHRN
Ahren Acquisition
$10.52
+0.2%
+758.8%1.59 million185,276$16.73 million
EVgo, Inc. stock logo
EVGO
EVgo
$4.16
-10.7%
+752.8%22.43 million2.63 million$93.30 millionAnalyst Report
Analyst Revision
News Coverage
Gap Down
Innodata Inc. stock logo
INOD
Innodata
$10.00
+20.6%
+731.8%1.46 million175,235$14.58 millionAnalyst Report
Insider Selling
Bowlero Corp. stock logo
BOWL
Bowlero
$11.71
-16.7%
+715.2%11.58 million1.42 million$135.60 millionEarnings Report
Analyst Report
Gap Down
SciPlay Co. stock logo
SCPL
SciPlay
$19.66
+26.3%
+708.3%3.77 million465,817$74.02 millionAnalyst Downgrade
Analyst Revision
Gap Up
WeTrade Group, Inc. stock logo
WETG
WeTrade Group
$0.05
-4.2%
+704.4%76.35 million9.49 million$3.99 millionUpcoming Earnings
News Coverage
Gap Up
Cue Health Inc. stock logo
HLTH
Cue Health
$0.82
+29.7%
+693.1%2.77 million349,463$2.26 millionAnalyst Report
News Coverage
Gap Up
LightInTheBox Holding Co., Ltd. stock logo
LITB
LightInTheBox
$1.21
+3.4%
+680.4%422,44454,132$511,157.24Analyst Report
Short Interest ↓
Electra Battery Materials Co. stock logo
ELBM
Electra Battery Materials
$1.21
+28.7%
+652.0%471,48162,694$570,492.01Gap Up
GSI Technology, Inc. stock logo
GSIT
GSI Technology
$5.92
+35.8%
+627.8%17.68 million2.43 million$104.65 millionAnalyst Report
Gap Down
ReTo Eco-Solutions, Inc. stock logo
RETO
ReTo Eco-Solutions
$2.37
+6.3%
+623.9%272,97137,706$646,941.27Stock Split
Invesco KBW Property & Casualty Insurance ETF stock logo
KBWP
Invesco KBW Property & Casualty Insurance ETF
$84.02
+1.0%
+623.8%234,42632,389$19.70 million
Take-Two Interactive Software, Inc. stock logo
TTWO
Take-Two Interactive Software
$139.63
+11.7%
+597.1%12.47 million1.79 million$1.74 billionEarnings Report
Analyst Report
News Coverage
Gap Up
National Western Life Group, Inc. stock logo
NWLI
National Western Life Group
$405.01
+3.6%
+585.8%62,9739,183$25.50 millionAnalyst Report
News Coverage
WisdomTree Japan Hedged SmallCap Equity Fund stock logo
DXJS
WisdomTree Japan Hedged SmallCap Equity Fund
$51.07
-0.4%
+585.2%19,7122,877$1.01 millionNews Coverage
AgeX Therapeutics, Inc. stock logo
AGE
AgeX Therapeutics
$0.54
+2.3%
+584.0%131,86919,278$71,209.26News Coverage
Gap Down
AudioCodes Ltd. stock logo
AUDC
AudioCodes
$8.60
+4.1%
+576.3%1.14 million167,879$9.76 millionAnalyst Report
HeadHunter Group PLC stock logo
HHR
HeadHunter Group
$15.03
+574.0%3.47 million514,621$52.13 millionGap Up
Black Spade Acquisition Co stock logo
BSAQ
Black Spade Acquisition
$10.30
+572.9%537,75379,921$5.54 millionNews Coverage
MeaTech 3D Ltd. stock logo
MITC
MeaTech 3D
$0.82
+2.7%
+572.7%237,64035,325$195,149.97Gap Up
Alpha Healthcare Acquisition Corp. III stock logo
ALPA
Alpha Healthcare Acquisition Corp. III
$10.22
+0.1%
+567.3%572,49885,794$5.85 million
ASP Isotopes Inc. stock logo
ASPI
ASP Isotopes
$0.33
+3.5%
+563.6%1.50 million226,386$497,425.77Positive News
Gap Down
Global X Artificial Intelligence & Technology ETF stock logo
AIQ
Global X Artificial Intelligence & Technology ETF
$25.08
+1.9%
+560.5%357,91354,188$8.98 millionPositive News
Boot Barn Holdings, Inc. stock logo
BOOT
Boot Barn
$66.77
-10.7%
+558.1%4.97 million755,307$331.87 millionEarnings Report
Analyst Report
News Coverage
Gap Down
Minority Equality Opportunities Acquisition Inc. stock logo
MEOA
Minority Equality Opportunities Acquisition
$11.15
+0.3%
+548.9%29,7634,587$331,857.45
Sonder Holdings Inc. stock logo
SOND
Sonder
$0.76
+41.4%
+544.1%8.00 million1.24 million$6.05 million
Canada Goose Holdings Inc. stock logo
GOOS
Canada Goose
$18.30
-10.5%
+538.8%12.52 million1.96 million$229.18 millionAnalyst Report
Options Volume
News Coverage
Gap Up
XBiotech Inc. stock logo
XBIT
XBiotech
$5.04
+12.2%
+536.7%333,88852,444$1.68 millionUpcoming Earnings
Analyst Report
News Coverage
Datasea Inc. stock logo
DTSS
Datasea
$1.15
+7.5%
+532.7%141,79822,411$163,067.70Upcoming Earnings
Short Interest ↓
News Coverage
Gap Down
VirTra, Inc. stock logo
VTSI
VirTra
$7.41
+1.4%
+508.4%296,37948,717$2.20 million
Trevi Therapeutics, Inc. stock logo
TRVI
Trevi Therapeutics
$2.35
-4.1%
+473.8%483,98584,347$1.14 millionGap Down
Leap Therapeutics, Inc. stock logo
LPTX
Leap Therapeutics
$0.64
+4.9%
+451.4%4.27 million773,586$2.73 millionAnalyst Revision
News Coverage
Gap Up
Immutep Limited stock logo
IMMP
Immutep
$2.43
-7.3%
+442.2%5.27 million972,492$12.81 millionAnalyst Report
News Coverage
Gap Down
Steelcase Inc. stock logo
SCS
Steelcase
$7.16
+3.9%
+439.2%4.33 million802,993$31.00 millionAnalyst Report
Larimar Therapeutics, Inc. stock logo
LRMR
Larimar Therapeutics
$3.77
+2.2%
+431.1%1.18 million222,604$4.46 millionAnalyst Report
Analyst Revision
News Coverage
Rani Therapeutics Holdings, Inc. stock logo
RANI
Rani Therapeutics
$4.39
-4.1%
+428.2%239,74445,391$1.05 millionAnalyst Revision
News Coverage
Gap Up
ROCG
Roth CH Acquisition IV
$10.40
-2.1%
+426.8%95,92618,208$997,630.40Gap Up
Exela Technologies, Inc. stock logo
XELA
Exela Technologies
$6.35
-4.5%
+421.7%9.97 million1.91 million$63.32 millionStock Split
News Coverage
Gap Up
Trading Halted
Cyclerion Therapeutics, Inc. stock logo
CYCN
Cyclerion Therapeutics
$6.16
+22.5%
+412.8%118,04323,018$727,144.88Stock Split
Kopin Co. stock logo
KOPN
Kopin
$1.62
+15.7%
+406.2%2.60 million513,290$4.21 millionEarnings Report
Analyst Revision
Edap Tms S.A. stock logo
EDAP
Edap Tms
$10.40
-5.5%
+406.1%300,29259,340$3.12 millionAnalyst Downgrade
News Coverage
EVe Mobility Acquisition Corp stock logo
EVE
EVe Mobility Acquisition
$10.51
+0.1%
+406.0%810,411160,153$8.52 million
Cincinnati Bancorp, Inc. stock logo
CNNB
Cincinnati Bancorp
$14.35
+4.0%
+399.6%21,2234,248$304,550.05Gap Up
Guardforce AI Co., Limited stock logo
GFAI
Guardforce AI
$6.15
+22.0%
+398.4%11.86 million2.38 million$72.92 million
Everest Re Group, Ltd. stock logo
RE
Everest Re Group
$377.50
+2.3%
+395.1%1.57 million316,767$592.01 millionDividend Announcement
Analyst Report
Analyst Revision
News Coverage
Stryve Foods, Inc. stock logo
SNAX
Stryve Foods
$0.52
+29.5%
+393.7%401,13681,246$207,788.45Analyst Revision
News Coverage
Positive News
FARO Technologies, Inc. stock logo
FARO
FARO Technologies
$11.88
+8.8%
+391.8%1.05 million213,520$12.47 millionAnalyst Report
Insider Buying
News Coverage
Gap Up
ECB Bancorp, Inc. stock logo
ECBK
ECB Bancorp
$10.96
-0.4%
+391.3%69,91214,230$766,235.52Insider Buying
DIRTT Environmental Solutions Ltd. stock logo
DRTT
DIRTT Environmental Solutions
$0.36
+11.7%
+389.0%490,327100,271$178,479.03Negative News
Gap Up
Invesco NASDAQ Internet ETF stock logo
PNQI
Invesco NASDAQ Internet ETF
$146.65
+1.4%
+387.3%119,51324,524$17.53 millionNews Coverage
Positive News
Kingstone Companies, Inc. stock logo
KINS
Kingstone Companies
$1.46
-2.7%
+385.4%73,93615,232$107,946.56Short Interest ↓
Grab Holdings Limited stock logo
GRAB
Grab
$2.75
-14.8%
+384.7%79.44 million16.39 million$218.08 millionGap Down
Cognition Therapeutics, Inc. stock logo
CGTX
Cognition Therapeutics
$2.00
+14.9%
+374.0%311,43165,704$622,862.00News Coverage
CLIN
Clean Earth Acquisitions
$10.36
0.0%
+368.3%330,71970,616$3.42 million
TuSimple Holdings Inc. stock logo
TSP
TuSimple
$1.46
+14.1%
+362.1%11.50 million2.49 million$16.80 millionUpcoming Earnings
News Coverage
Gap Down
BioCardia, Inc. stock logo
BCDA
BioCardia
$1.70
0.0%
+358.8%124,40327,116$211,385.58Analyst Revision
Abrdn Japan Equity Fund Inc stock logo
JEQ
Abrdn Japan Equity Fund
$5.70
+1.0%
+357.2%112,37124,578$640,514.70Dividend Announcement
News Coverage
China Yuchai International Limited stock logo
CYD
China Yuchai International
$7.82
-2.3%
+351.8%59,89913,257$468,410.18Upcoming Earnings
Analyst Report
News Coverage
VTEX stock logo
VTEX
VTEX
$4.13
+0.5%
+344.6%1.79 million403,505$7.41 millionGap Down
Rigel Pharmaceuticals, Inc. stock logo
RIGL
Rigel Pharmaceuticals
$1.30
-28.6%
+343.7%12.97 million2.92 million$16.87 millionAnalyst Report
Gap Down
Hawkins, Inc. stock logo
HWKN
Hawkins
$47.61
+10.6%
+324.7%280,32166,003$13.35 millionAnalyst Report
Gap Up
Ranger Energy Services, Inc. stock logo
RNGR
Ranger Energy Services
$12.24
+3.4%
+323.9%243,18357,370$2.98 million
Expensify, Inc. stock logo
EXFY
Expensify
$6.62
+10.9%
+323.4%1.45 million343,216$9.62 millionInsider Selling
iShares iBonds Dec 2029 Term Treasury ETF stock logo
IBTJ
iShares iBonds Dec 2029 Term Treasury ETF
$22.00
-0.5%
+322.7%84,12119,900$1.85 millionPositive News
Delcath Systems, Inc. stock logo
DCTH
Delcath Systems
$6.95
+6.6%
+320.7%166,00939,458$1.15 millionAnalyst Report
Yandex stock logo
YNDX
Yandex
$18.94
+320.5%28.27 million6.72 million$535.46 millionOptions Volume
Gap Up
Why Average Daily Trading Volume Matters to Every Investor

Understanding the significance of volume can help investors focus on what really matters

One measure of demand for buying or selling a security is its trading volume. In general, higher trading volume supports strong price movement. But how do investors know when volume is really high? Like many other metrics such as price-to-earnings (P/E) ratio, trading volume varies for different stocks and different sectors. That’s where investors can look to a stock’s average daily trading volume.

This article will help you understand the average daily trading volume, what it can tell investors, what causes it to change significantly, and how it can be used as part of a trading system.

The average daily trading volume (ADTV) is simply the average amount of shares traded each day for an equity. To calculate ADTV, find the total volume of shares traded over a certain period of time and divide that number by the desired time period. The most commonly used time frames associated with ADTV are monthly, quarterly, and yearly (annual).

Most financial websites and trading platforms provide the average daily trading volume for a security. Additionally, stock charts can show you volume as it relates to price movement. This gives investors a clear picture of specific patterns related to trading volume.

Average daily trading volume is significant in the same way that a simple moving average (SMA) is significant. The SMA smooths out price movement. The ADTV smooths out volume. On any given day, a security may have higher or lower trading volume for any number of reasons. Knowing the ADTV gives investors a clearer understanding of investor sentiment.

What an Increase in ADTV Means - Average daily trading volume tells investors how much interest a security is generating. This helps them determine the liquidity of that security (i.e. how easy it is to trade). Simply put, an average daily trading volume that is increasing means there is a significant commitment by traders. This tells traders that there are many available buyers and sellers, making it easy to execute a trade.

When the price of an equity is consolidating, investors want to see evidence of higher-than-average trading volume along with a rising stock price. This is a bullish signal because it confirms that more buyers are entering the market.

What a decline in ADTV means - Typically a downturn in average daily trading volume means that there is less enthusiasm about a particular security. This means that there are fewer committed buyers. And that means there is less liquidity in that security. For a day trader looking to enter an exit a position quickly, a security that is seeing a downturn in ADTV may be more difficult to buy and sell quickly.

For short sellers, a lower-than-average trading volume along with a falling stock price means that there may not be sufficient downward pressure on the stock to execute a trade. Conversely, long investors may view a stock price that is falling on low volume as an opportunity to accumulate more shares because selling pressure is not that strong.

Here are a few examples of situations that may affect the average daily trading volume of a given security:

  • An upcoming earnings report – Trading volume tends to go up in a stock in the period immediately before and after it releases earnings. If analysts and investors expect a company to post better-than-expected earnings, buying demand will increase. Conversely, if a company is expected to report disappointing earnings, selling pressure will increase.
  • An upcoming ex-dividend date – For dividend-paying stocks, trading volume will typically increase prior to the company’s ex-dividend date. The ex-dividend date is the date before which an investor must be a shareholder of record in order to receive a dividend payment.
  • Analyst reports – Trading volume may move higher or lower in response when analysts issue a new revision to a stock and/or their price target for the stock.
  • News coverage – A company can make news for positive and negative reasons. Depending on the reason for the news coverage, trading volume may move higher or lower.
  • Changes in institutional buying – There are times of year, specifically the period between June through August that institutional investors are less active in the market. During this time, you may see prices changing based on significantly below average volume.

Average daily trading volume is a technical indicator. Technical analysis is a trading strategy that is used by active traders to determine when to enter (buy) or exit (sell) a position. These investors are typically looking to buy and sell a security, often times in the same day. For that reason, they use average daily trading volume to select securities. 

Investors with a long position in a stock are generally more interested in fundamental analysis. That means a monthly or quarterly ADTV does not hold much significance. However, if the annual ADTV has been trending lower over a number of years, it may be a sign that there are other problems with the stock.

Investors who use annual daily trading volume in their trading understand that the relationship between volume and price comes down to supply and demand.

When investors want to buy or sell a stock, there has to be investors on the other end of that trade. The average daily trading volume can signal to an investor that an event has occurred that is causing trading demand to increase.

But simply knowing that there is trading demand is not sufficient. While average daily trading volume can help confirm to a trader that a security is being actively traded, it does not, by itself, indicate price movement one way or another. There can be both high buying volume and high selling volume.

This is why, as part of a trading system, average trading volume is always secondary to price. To make a more informed decision about what the average daily trading volume means, investors will look at price movement. Here are a few ways that investors use volume in their trading:

To Confirm Convergence - When the price is moving in the same direction as volume (that is the price is rising when volume is increasing or conversely the price is falling as demand is decreasing), that is called convergence. This is a good indicator that a trend is likely to continue and prices are likely to continue in the direction they are going.

To Confirm Divergence - When the price of a security is moving in the opposite direction from its volume this is called divergence and it generally means that any trend that was associated with the security is weakening.  If price is rising as demand is falling it may mean that support for a price is losing steam. If the opposite is happening and price is falling but demand is rising, it could be a clue that the stock may be ready to rally.

To Observe What Happens When Price Meets Resistance - In any rally, prices will reach a level where buyers take a breather. This is called a resistance level. In order for prices to move past this level, there has to be significant volume. Therefore, traders look at securities that are trading above the average daily trading volume because they are more likely to push past a resistance level.

  • If the price continues to advance beyond a resistance level and the security continues to have an above average volume – This is a bullish signal that implies investors are enthusiastic. And enthusiasm leads to more buying and a price that will continue to climb.
  • If the price continues to fall below a resistance level and continues to have an above average volume – This is a bullish signal for short sellers because the combination of negative price movement with advancing volume signifies a high level of investor anxiety. This is likely to produce more selling and a price that will continue to decline.

Some Final Thoughts on Average Daily Trading Volume

Average daily trading volume (ADTV) is the average amount of shares traded each day for an equity. ADTV is a technical indicator that gives investors a snapshot of the liquidity in a stock over a specific time period (usually monthly, quarterly, or annually). 

An informed investor can and should, at the very least, be aware of what an average daily trading is and what it may be saying about their investment. But the extent to which it impacts their trading habits really depends on what kind of investor they are.

ADTV is only one data point that investors use. But as this article shows it can tell investors and traders a great deal about investor sentiment. Understanding that sentiment helps minimize risk by pointing investors towards stocks that have liquidity (i.e. a committed group of buyers and sellers). However, ADTV is always secondary to price movement. Ultimately investors want to see both high demand for a stock and strong price movement.

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