This simple indicator spots BIG moves

Drops Monday 🎯 I Trade the SPY 🔎

Good evening, Folks!

With the small caps red hot recently, I want to go through a few simple intraday trading strategies and concepts that pro traders use time and time again. 

Today, I want to show you a powerful yet very simple tool I use called relative volume, or “Rvol,” for short. 

When a stock has a significant catalyst, usually some sort of news that changes the fundamentals for a stock, the volume should increase significantly. 

This is because of the news, the demand or supply of the stock increases, and traders all around the world flock to it. 

Rvol is simply a measure of the increase in volume.  So, if a stock trades 10 times its average volume, its Rvol is 10.

Let’s take a look at an example from this week. On Tuesday, the Government announced that it will reclassify “weed” as a less dangerous drug. 

That could have a significant impact on the demand for marijuana and, thus the revenue for “MJ”-related companies. 

Needless to say, this big news sent weed stocks soaring!

One of the smaller names in the sector is IMCC.

Notice the big volume bars at the bottom of the chart?

That shows an epic amount of new interest as investors suddenly piled into the stock.

Previously IMCC traded less than 200,000 shares per day on average, but once the big news hit it traded over 13 million shares and then over 40 million shares the next day.

When that happens, a stock's range usually increases, and IMCC, which usually moves just a few cents, more than DOUBLED in price over the next two trading days. 

So the big lesson for today is that news can increase volume, and volume can increase the range of a stock leading to big moves. 

IMCC was up over 100% this week after this signal, and I think this play is over at this stage of the move.

The point I want to make is that if you start using Rvol in your scanning, you will land on some ideas with incredible short-term price moves. 

Now, there are not a ton of trading ideas you will find using this technique, but when you do, using this one simple indicator will help you filter some of the most explosive ideas.

Speaking of “explosive ideas,” in just a few hours, I will be dropping my latest big idea for the coming week.

This is my “Bullseye Trade” idea, and thousands of hungry traders are going to get this before the market opens on Monday.

I am still in the trade I made last week, which is currently up around 30%.  

Not a bad week, but I am always aiming to make 100% on these trades… so I have my work cut out for me tomorrow.

If you are still not on this list, you need to make sure you use this upgrade link and secure the best price possible.

And make sure you do it now – you don’t want to miss out on my next great trade idea!

Trade well, and I’ll see you first thing in the morning!

Jeff Bishop

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