I am just trying to find stocks with enough volume every day. I am sure that even with good volume I will encounter consolidating stocks for intraday. But, I am not able to come around an average figure of healthy volume. For example, I should try to find stocks with volume in millions or less than that?
Do you guys know or use a certain range of volume to find stocks for the day? I know that this can be part of your scanner, but sharing a rough figure of volume will not expose much of the strategy or filtration, as far as I understand
All stocks and indices consolidates. And Nifty 50 stocks are most liquid. You can use scanners to get daily or monthly average volume.
If you are new, please start with swing trading. Hold stocks for 10 to 15 days. But still, if you just want to day trade, select one or two of your favourite stocks from nifty 50 and keep track of those stocks alone. You will know the nature of that stock in few months of time.
Thanks for your reply. I am not new to trading, but I am still doing low level trading just to learn first and I am improving as well. But, my question was to get an average number which I can look at. For example - if I can put a random number in my scans for volume (say 50k+) then it is not idle. I tried different numbers for volume filtration in nifty 50 but I still miss many good trades. Sometimes my volume is too low to find stocks and sometime it is too high.
I know that there is no perfect number, but an average figure might help rather than playing around with random figures.
Also, is it idle to trade just one or two stocks every day while there might be a very strong setup forming in other stocks? Usually I see in the video tutorials and books, they recommend scanner to pick 4-5 stocks for the day.
Trade stocks with average daily volume more than 500,000. If you want to find stocks that are in play look for RVOL above 2. RVOL above 2 usually implies the stock is active and probably had a good reason to be so which means you can find lot of trading opportunities. Next thing you want to look at is gap %, this is not as important as the earlier ones but this confirms there’s a some volatility in the stock usually somewhat volatile stocks make trends. And last but not least, look for a very tight spread. High spread will make it difficult to get in and out of the stocks quickly.
It also helps to know stocks that may have had some catalysts like a news, earnings etc…
Thanks for such a helpful reply. I found that most traders avoid sharing such bits of information, but thanks for being helpful for the fellow traders.
Yes, I look for rvol manually as I couldn’t find any scanner providing this filter. Rvol does make a difference and I observed that too. In terms of volume above 5000,000 I will definately try this figure as I was hovering around 200,000 only.
Once again, thanks for your valuable inputs and suggestions
