How to Use Volume and News to Catch Momentum Early
Catching momentum early in the market doesn’t require fancy tools — it just takes clear signals, volume, and timely news. I’ve built my trading strategy around those two pillars, and it’s the reason I no longer chase — I anticipate.
Below, I’ll break down exactly how I use volume and news to spot opportunities before they explode — and how you can do the same.
Table of Contents
Why Volume Is the Most Honest Indicator
Forget the hype around complex indicators — volume tells the truth. When I see a sudden surge in volume at a key level, I pay attention. That means someone big just stepped in.
Volume shows commitment. If price is moving but there’s no volume behind it, I stay out. But if volume is increasing with price movement, that’s when I lean in.
My Morning Volume Scan
Before 9:30AM, I scan for stocks with unusual volume — sometimes 2x, 5x, or even 10x their average. That spike tells me that something is brewing, and it’s usually tied to pre-market news or an event.
I don’t want to guess. I want confirmation — and volume confirms interest.
Where I Get My News (Free)
I don’t pay for expensive services. I use free news sources like:
- Benzinga (free feed)
- Yahoo Finance trending tickers
- Twitter/X trends
- Reddit’s r/stocks or r/pennystocks
If I see a stock mentioned across multiple news sources and volume is rising, I move it to my watchlist.
My Volume + News Filter
I ask myself:
- Is this a real catalyst (earnings, FDA approval, acquisition)?
- Is the volume at a breakout level?
- Is there room to move on the daily chart?
If I get a “yes” to those, I prep the trade.
How I Combine News With Price Action
News can cause a stock to spike — but if it’s not backed by strong price action, I skip it. I wait for confirmation: a clean flag, base, or breakout with volume.
Many traders jump in just because of a headline. I wait for the reaction to that headline on the chart.
Why I Don’t Chase News Spikes
When I was new, I used to chase every alert and news pop. I always ended up buying the top. Now, I let the market digest the news, then watch volume.
If volume stays strong and the stock holds above support, I know momentum is real — and I can catch the next leg up.
Let Volume Show You the Way
Volume is your early warning system. It shows up before the move, not after. If you train your eyes to spot it alongside news, you’ll start getting in before the crowd — not behind them.
Want My Full Process?
I break all of this down in my ebook:
👉 Pay Your Bills With Stocks
In it, I explain how I track volume, filter the right news, and build watchlists that actually make money — even without fancy indicators or tools.
It’s the same method that helped me turn small trades into real income.
No fluff. No hype. Just what works.
How I Track Volume Throughout the Day
Volume isn’t just a morning tool. I keep an eye on it during the day because momentum can return hours later. I use free charting platforms like TradingView to spot any midday volume surges that can indicate the second leg of a breakout or a reversal forming.
If a stock had news in the morning and starts seeing new volume after lunch, that’s often a sign that institutional buyers are getting involved. I don’t blindly jump in — I analyze the reaction carefully.
My Watchlist Isn’t Random — It’s Built on Volume and News
Every stock I put on my daily watchlist has a purpose. It’s either running on strong pre-market news, showing relative volume, or sitting at a key technical level with rising interest.
I narrow it down to just a few so I can actually monitor them. That’s how I avoid missing clean entries and manage my risk effectively.
Avoiding “Fake” Volume Spikes
Not all volume is good volume. One thing I’ve learned is to look at the bigger picture. If volume spikes but price doesn’t move much or keeps rejecting the same level, it’s probably just algos or low-float manipulation.
Volume must be sustained and accompanied by structure. If I don’t see both, I skip it.
The Pre-Market Game Plan
Between 8:00 and 9:20AM, I’m scanning headlines and checking volume against yesterday’s range. If I see a ticker gapping up on real news with rising volume, I add it to my focus list.
Then I draw key levels, set alerts, and prep my mindset for the open. Trading without a plan is gambling — and I don’t gamble with my income.
Why Volume Comes Before Price
One of the biggest shifts I made was this: I look at volume before price. Price can lie — volume doesn’t. A stock can float up with no volume and trap traders. But when volume shows up first, and price follows, I know the move is organic.
This small shift in mindset helped me avoid fakeouts and increased my win rate significantly.
When I Skip the Trade (Even If Volume Is There)
There are days where volume is heavy, the news is legit, but price action is choppy. That’s a red flag. I don’t force trades just because something “looks good” at first glance.
I’ve learned to walk away. There’s always another setup — especially when you learn to be patient and disciplined with your entries.
Patterns I Watch Alongside Volume
Certain patterns combined with volume are my green light. For example:
- A bull flag with rising volume on the breakout
- A breakout over premarket high with a volume surge
- A first pullback entry after the breakout holds support
If volume confirms the pattern, I take the trade. If not, I let it go.
Why News Alone Isn’t Enough
Just because a stock has breaking news doesn’t mean it’ll move. I learned that the hard way. It needs to have volume support, a clear level to break, and buyers stepping in.
News is the spark — but volume is the fuel. Without both, I pass on the play.
How I Built My Edge Over Time
I didn’t start with this process. I used to bounce between strategies, indicators, and Discord alerts. But once I simplified everything down to just volume, news, and price action, everything changed.
It’s repeatable. It’s simple. And best of all, it works — even for small accounts.
The Role of Patience in Momentum Trading
Sometimes the best momentum trades don’t happen at the open. They show up an hour later. I used to feel pressure to trade right away. Now, I wait. I let the setup come to me, and volume tell me when to move.
That one change has helped me avoid so many losing trades and false breakouts.
My Favorite Tools Are Still Free
You don’t need a Bloomberg Terminal. I use free platforms like:
- TradingView (volume analysis)
- Finviz (news + filters)
- Twitter/X for sentiment
- Benzinga for real-time headlines
All of these help me spot momentum early, and I share my exact filtering process in my ebook.
Ready to Level Up?
If you’re tired of second-guessing trades and want to learn how I use volume and news to trade with confidence, grab my full guide:
👉 Pay Your Bills With Stocks
Inside, I walk through how I track setups, use volume smartly, and make trading simple.
It’s the routine that helped me start generating real monthly income — even while working a job.