How to Set Up (3 Steps)
- •Step 1: Search for any stock on StockAlert.pro (e.g., GME, AMC, LCID)
- •Step 2: Select "Volume Change" and choose your threshold (recommended: 100-200% for quality signals)
- •Step 3: Choose notification method (email or SMS) and save
Done! You'll receive automatic alerts when volume spikes above your threshold. Always check price direction and catalyst before trading - volume alone isn't enough.
Example: GameStop Volume Signal - January 2021
- •Setup: GME trading at $19.94 on January 11, 2021, near support after months of basing
- •Signal: Volume spiked to 144M shares (7.2x 20-day average), price up +57% on the day
- •Alert Trigger: 7x volume + breakout = institutional accumulation confirmed (not just retail noise)
- •Result: GME rallied to $483 (+2,322%) over next 2 weeks - volume revealed funds building positions
- •Key Insight: Extreme volume spike at breakout reveals information asymmetry - someone knows something
Scenario Guide
| Scenario | Volume Level | Price Action | Example | Action |
|---|---|---|---|---|
| Accumulation | 3-5x average | Up + breakout | GME Jan 2021, 7.2x vol | Buy with momentum |
| Distribution | 2-4x average | Down + breakdown | RIVN May 2022, 3.8x vol | Exit longs immediately |
| Pump & Dump | >5x average | Up then reverses | MULN spike, down 80% after | Avoid micro-caps <$300M |
| Quiet Accumulation | 1.5-2x average | Sideways/slightly up | Multi-day building | Monitor - breakout coming |
| News Noise | >3x average | Mixed/earnings day | Expected high volume event | Ignore - no edge |
When to Use
- •You want early detection of institutional activity before price moves
- •You need confirmation for breakouts (volume validates price moves)
- •You're screening for potential catalysts or accumulation patterns
When Not to Use
- •Volume spike without price confirmation (sideways = rotation, not signal)
- •Known news events like earnings or options expiration (expected high volume)
- •Micro-cap stocks (<$300M market cap) - 60%+ pump-and-dump risk
Conclusion
Volume is truth serum for price action. Unusual volume (3-5x average) reveals information asymmetry - someone knows something. But volume alone is noise. Require the trinity: Volume + Price confirmation + Catalyst. Master the context, ignore the noise.