DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.
Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.
Must Read: 4 Big-Volume Stocks Trading Higher
With that in mind, let's take a look at several stocks rising on unusual volume recently.
Tile Shop (TTS - Get Report) operates as a specialty retailer of manufactured and natural stone tiles, setting and maintenance materials, and related accessories in the U.S. This stock closed up 13.8% at $14.85 in Friday's trading session.
Friday's Volume: 3.57 million
Three-Month Average Volume: 903,203
Volume % Change: 376%
From a technical perspective, TTS gapped up sharply higher here and broke out above some near-term overhead resistance levels at $13.46 to $14.59 with monster upside volume. That move is starting to push shares of TTS within range of triggering another near-term breakout trade. That trade will hit if TTS manages to take out its 50-day moving average of $15.88 to Friday's high of $15.99 with high volume.