Today, lead trainer of StocksToTrade, Tim Bohen goes over volume, prediction, and things we look for to get that edge in trading. So, let’s talk about predicting late-day volume spikes.
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First things first, can you predict a late-day volume spike? No, you can’t. But, you can prepare for it!
You can get ready for when the price action confirms, and that's how you find consistent setups. You want to look for a stock that was a big gainer in the past, also known as a former runner. The best way to spot those is to use your scanners to see what stocks are moving.
History doesn’t repeat but it does rhyme. These stocks that run in the past tend to run again in the future. Look at the long-term charts — the one-year chart, two-year chart and five-year charts. Look for those big candles, those multi-day moves.
Don't just look at that one-day, one-minute chart. A lot of newer traders make that mistake. So look at the past performance. Did it have a history of running? Does it have unusual volume today?
Look at the 60-day average volume. I like to see volume that is considerably higher than the 60-day average. That means there's a lot of traders in this. Remember, for a stock to go up, you need more buyers than sellers. More volume means more buyers, heightening the chance of an afternoon spike.
You also want to look for news. It can even be “dubious” news, but if you've got a news article from today that at least reads slightly positive, it pushes these stocks. That's a big thing. Then, you want to look for breakouts on the charts. Whether it’s breaking a ninety-day level, a six-month level, a one-year level, or even if it's an all-day high.
Those are the biggest things you want to look for. Unusual volume, news, past instances of running. And of course, always pay attention to the overall market. Focus on putting as many of these indicators into your decision-making as possible.
The market is quite often a self-fulfilling prophecy. Try it, experiment with it, check off all those boxes. If you can't check all those boxes, sometimes the best trade is no trade at all.
#StocksToTrade #TechnicalIndicators #Volume
*Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.
You can lose money trading stocks. Do not invest money you cannot afford to lose. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services.

By Stock Chat

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30 thoughts on “How to trade late day volume spikes”
  1. Avataaar/Circle Created with python_avatars David Gibbens says:

    Best video for newbies

  2. Avataaar/Circle Created with python_avatars Stephane says:

    Hi, is that possible to do a video on End of Day volume analysis on Index such as spy to see if next day likely green?

  3. Avataaar/Circle Created with python_avatars Danny Hardwick says:

    STT IS AWESOME, THANKS

  4. Avataaar/Circle Created with python_avatars Michael Blue says:

    Seriously I've learned more on your Channel and the SST platform than anywhere else online.

  5. Avataaar/Circle Created with python_avatars Michael Blue says:

    I have a question, is peanut butter traded and is crunchy worth more then smooth?

  6. Avataaar/Circle Created with python_avatars mike Contreras says:

    I've watched videos on how to use the screener on STT platform and it doesnt work for me. I need step by step instruction. Can you help?

  7. Avataaar/Circle Created with python_avatars ginacervi says:

    Thank you for all these super helpful videos. I learn something every time I watch your videos

  8. Avataaar/Circle Created with python_avatars César1122 says:

    Always good video my Tim !

  9. Avataaar/Circle Created with python_avatars Dave Duggan says:

    Great video Tim! Is that watch you have an invicta?

  10. Avataaar/Circle Created with python_avatars Roger Drolet says:

    I really appreciate the work that you done. Your videos are excellent. I am a Millionaire Challenge Student with Stocks to Trade (STT) and your videos are a great resource. The STT team does a great job supporting their students.

  11. Avataaar/Circle Created with python_avatars Advanced plumbing And septic service says:

    just found your video great work . I seem to be getting myself trapped on the early morning volume spikes seems like im always a little to late before i get trapped on the way down any advice would be great Thanks

  12. Avataaar/Circle Created with python_avatars Francisco Sanchez says:

    wow really good information tks so much

  13. Avataaar/Circle Created with python_avatars Chad says:

    Where is the best place to look for "News" on a stock? Just google, or is there somewhere specific that is better?

  14. Avataaar/Circle Created with python_avatars Chad Williams says:

    Thanks Tim! Always with the useful info. Had an aha moment with how you mention to look at past multi day runners for a late day spike. Thanks again!

  15. Avataaar/Circle Created with python_avatars Bob Riddell says:

    how do you figure out your targets on red to green moves?

  16. Avataaar/Circle Created with python_avatars Johan Straver says:

    Thanks!

  17. Avataaar/Circle Created with python_avatars Realtor Raj Bomjan tamang says:

    Hey your stock to trade is not working where is customer service

  18. Avataaar/Circle Created with python_avatars Julian Martinez says:

    Thanks. I have a question and It has to do with more of the type of laptop that can be use for Stocks to trade and I have a MacBook Aire would that work for stocks to trade or do I need to get something else??

  19. Avataaar/Circle Created with python_avatars J Z says:

    Great video

  20. Avataaar/Circle Created with python_avatars Oinotna Iramida says:

    Trade it's the same how our life never stops learning…..

  21. Avataaar/Circle Created with python_avatars Steven Hornberger says:

    Do you have a favorite scann in STT to find late day spikers ?

  22. Avataaar/Circle Created with python_avatars bxnyc77 says:

    What does it mean when a stock as legs also thank you for the videos you are very helpful

  23. Avataaar/Circle Created with python_avatars Isaiah Zuniga says:

    Tim I just wanted to say thank you for all the work you put in! It doesn’t go unnoticed I appreciate and thumbs up all your videos. I use the thumbs to keep track of which videos I’ve watched also lol. On behalf of all traders thank you!!!!

  24. Avataaar/Circle Created with python_avatars Lou Meyer says:

    I look for stocks that run all day and fade into the close and yes volume is big factor, to me, what happen near the last hour lets me see if it's a long or short.

  25. Avataaar/Circle Created with python_avatars ChandrA says:

    Question: These days short sellers are aggressively jumping and selling penny stocks when they up around 100% in the pre-market, now my question is what is the usual buying back plan and how the stock price reacts?

  26. Avataaar/Circle Created with python_avatars Chris Robinson says:

    Good stuff. So helpful Tim!!

  27. Avataaar/Circle Created with python_avatars Brent Dickson says:

    Thanks Tim. I am loving your videos and your style of teaching. They are very helpful to someone that is learning and getting started.

    Also I think that your software platform is fantastic. I’m on the trial version now and I will definitely be subscribing.

    Might be back to you on this video is it would be helpful to see an example of the chart setups that you are describing.

    While I am new, I do understand many of the basic terms but it would be handy to see it to make sure that I’m not misinterpreting your descriptions

  28. Avataaar/Circle Created with python_avatars Olivia Roche says:

    Hi Tim I have been watching you videos and also Tim S my question is how to start I bought Tim S book but it's so confusing,any advice for novice.

  29. Avataaar/Circle Created with python_avatars Cy Creative Studio says:

    I love all of your videos Tim and also the podcast is great, keep doing that great job that worth a lot… Also, i want to tell you to look about the "moire effect" and how to eliminate that. Best regards

  30. Avataaar/Circle Created with python_avatars StocksToTrade says:

    Do you use all these factors? What are you using to predict late-day spikes?

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