Patterns › Momentum
Higher Lows + Volume Spike pattern
A higher lows + volume spike is a momentum pattern in which a stock holds a tight base while volume dries up, then pushes higher over five days as volume picks up again, a sign that buyers are returning before a breakout.
Stocks forming it recently ↓
What does a higher lows + volume spike look like?
Our scanner checks it as a setup where all of these hold:
- A base of 15 to 30 trading days whose high is 5% to 25% above its low.
- The base is tight: no taller than about 10 typical daily moves.
- Price at least 10% above the base's low.
- A push in the last five days: up at least 1% over five days, not down more than 2% today, and not closing in the bottom 30% of today's range.
- Volume quieter during the base, at least 10% below the 20 days before it.
- Volume picking up: the last five days average at least as much as the five days before.
- Despite the name, the lows inside the base don't have to rise, and a volume spike isn't required. A moderate pickup, about 1.5 to 2.5 times normal volume, scores best; much bigger spikes score lower.
How are entry, stop and target set?
Every pick comes with an entry zone, price targets and a stop. The targets come from how far past higher lows + volume spike setups actually moved, not from a textbook projection of the pattern's height. The stop scales with the stock's own average daily range, so a volatile stock gets a wider stop than a quiet one.
How is it different from a volatility compression?
Both are bases that signal before a breakout. Higher lows + volume spike needs volume to dry up in the base and pick up over the last five days, while volatility compression usually starts at the 60-day high and checks that daily price swings aren't widening.
Stocks forming a higher lows + volume spike recently
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