# Finding Momentum Stock Query

#### eklavyam

##### Banned
Trading momentum stock has an edge..they are yummy for quick in out kind of trades too..
but the main question is how to find them quickly?
But proper way never been disclosed..

If anyone of you would like to share how you hunt a momentum stock and ride on them then some of us can have a nice group here..
So we all can learn and earn together i.e, Sabka Saath Sabka Vikas

##### Well-Known Member
Trading momentum stock has an edge..they are yummy for quick in out kind of trades too..
but the main question is how to find them quickly?
But proper way never been disclosed..

If anyone of you would like to share how you hunt a momentum stock and ride on them then some of us can have a nice group here..
So we all can learn and earn together i.e, Sabka Saath Sabka Vikas

Hi eklavyam, there are many methods / techniques that could be used for finding out such momentum stocks. One of the ways could be to use - Relative Volume Indicator.
https://www.smbtraining.com/blog/relative-volume-rvol-defined-and-how-we-use-it
Relative Volume. This compares current volume to normal volume for the same time of day, and it’s displayed as a ratio. So for example, a stock trading 5 1/2 times its normal volume would have a Relative Volume display of 5.5.

Now how do we use relative volume? We use relative volume to gauge how In Play a stock is. When I am considering trading a stock I glance at relative volume, RV on my Level 2 as the screen grab shares below.

If RVOL is less than 1 it is not In Play on this trading day and I may decide not to trade it. If RVOL is above 2 it is In Play and this is more evidence I ought to be in the name. When stocks are *very* In Play you can see an RVOL of 5 and above. The higher the RVOL the more In Play the stock is.

I also use RVOL for position sizing. If RVOL is <1 I may decide not to take a *very* large position in the name. If RVOL is >3 this may give me more confidence to take a larger position as more reward and more liquidity should be present.