|Company||Market Cap||Price||Price Chg||Stock Volume||Relative
Top stock gainers are stocks where the prices are going up significantly over the course of the trading day. These stocks are listed in terms of percentage gains from the previous day's closing price. Stocks must have moved up more than 5% over their previous day’s price to make it on our list.
The change in stock price tells us the direction and magnitude of the stock’s movement. When investors feel positive about a stock they will buy shares. This buying will bid up the stock’s price. If investors feel negative about a stock they will sell their shares or sell options(sell short) and the price will go down. Volume is the number of shares that exchange hands in a day. Volume tells us the strength behind the price move. The more volume behind the move the more conviction in the trades.
Volume indicates how many shares are trading hands. When there is a move in the stock price, volume can show the strength behing the move when that day’s volume is compared to normal daily volume levels for the same stock.
When there is a big move in price but small volume, then the move may not be sustainable. The stock may quickly return to the old price(a gain or a loss) when there is small volume. On the other hand, large volume can indicate that the move will be sustainable and may even be building strength.
What’s more, when prices move too much and with very high volume it can be an indication of a point of capitulation, the point where the stock has reached a maximum or minimum and can be a signal for a reversal.
Every stock trades differently, therefore to measure if the volume of a stock is high you would need to compare it to the volume at which it typically trades. A low volume stock is going to trade at much lower volume(10K-100K shares a day) compared to Apple or Amazon(both 3 million)
By using a ratio of the current day’s volume over the average daily volume you can see if the ratio is above or below what you expect.
Traders will typically look at both volume AND volatility to identify potential trading opportunities. Traders should start with a stock’s technicals(the stock’s price and volume), and then check news about the company, industry, and overall economy, as well as use other analytical tools to help them. If the circumstances and the potential risk/reward warrants then a trader will make the decision to buy or sell.