In yesterday’s post, I shared a common approach for determining if premarket volume is unusual or not.
If you are a Trade-Ideas user, there are two applicable filters/columns already included in the program to use for this purpose.
The first is Relative Volume. As I mentioned in the previous post, this is often quite predictive for strategies when used in regular trading hours.
The second is the calculation you should use in the premarket. In TI, the filter is called Volume Today %.
In this screenshot, you can see both of these columns in use: Vol Today ($) and Rel Vol
I took this screenshot in the premarket, so you can see that Relative Volume is 1.00 even though both of these stocks have already done far more volume than their 10-day average volume.
It also shows clearly how the Volume Today % is calculated (divide the Vol Today column by the Avg Vol (10D) column and convert to a percentage).
-Dave
P.S. I’m considering sharing a few of my go-to Trade-Ideas alert windows and toplists that I use regularly. These are not trading strategies per se, but views of the market I use to review the day and understand what’s moving. If you’re a Trade-Ideas user and this interests you, let me know by clicking this link:
