Why Volume Matters
Price moves on high volume are more significant than the same move on light volume. Heavy volume during a price advance suggests genuine demand. Heavy volume during a price decline suggests sustained selling pressure. A volume spike with minimal price movement often indicates accumulation or distribution happening beneath the surface, before a breakout or breakdown.
How the Alert Is Calculated
Investography calculates the 20-day average daily volume for each stock from historical OHLCV data. The volume_spike alert fires when the current session's volume exceeds that 20-day average by a threshold that indicates unusual activity. The 20-day average is cached and refreshed every 6 hours for performance.
Set volume_spike alerts on your three to five most important watchlist stocks rather than every stock you follow. When a volume spike fires, it demands your attention and investigation. Too many volume spike alerts across too many stocks creates noise rather than signal.
What to Do When a Volume Spike Alert Fires
When the alert fires, open the stock detail page and check the price direction. Is the volume accompanying an upward move, a downward move, or is the price relatively flat? Check the CSE announcements section for any filings from the company. Read the AI nano insight for the stock if available in the morning brief. Volume without a known catalyst is worth monitoring closely over the next one to two sessions.