WINDERMERE, Fla. ( Stockpickr) -- Professional traders that run mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Many times when above average volume moves into equity it precedes a large spike in volatility.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

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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.

Let's take a look at a several stocks rising on unusual volume today. They are all recording volume in midday trading that is already at least 50% above their average trading volume for a full day.

Allot Communications

Allot Communications ( ALLT) is a provider of Internet protocol service optimization solutions for mobile, digital subscriber line and wireless broadband carriers, cable operator service providers and enterprises. The stock is trading up 5.2% at $15.30 in recent trading.

Today's Volume: 2,510,000

Average Volume: 272,361

Volume % Change: 2511%

This stock is popping today after the company announced that it had priced its ordinary share offering of 5.5 million shares at $14.25 per share.

From a technical standpoint, this stock is very close to triggering a breakout if it can manage to trade above some near-term overhead resistance at $15.68. A high-volume move above that level could set this stock up to re-test its July highs of $19.15.

Some of the big volume today is due to that offering, so I would watch how the volume tracks in following today if the stock does breakout.

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KIT digital

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KIT digital ( KITD), through its operating subsidiaries, provides enterprise clients an end-to-end technology platform for managing IP-based video assets across the browser, mobile device and Internet protocol television set-top box-enabled television set. The stock is trading up 28% at $10.76 in recent trading.

Today's Volume: 3,060,000

Average Volume: 549,615

Volume % Change: 1319%

This stock is soaring today after the company reported record third quarter earnings. Revenue for the third quarter jumped 29% sequentially to a record $62.3 million from $48.2 million in the previous quarter, and revenue increased 124% from $27.2 million in the same quarter last year.

From a technical standpoint, this stock broke out today above some past overhead resistance at $9.50 to $9.70 on monster volume. The next key technical levels that traders should be watching for are at the 200-day moving average of $11.20 and at $11.37, which is the next significant resistance.

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If KITD can manage to move above those levels, preferably after consolidating some of today's huge gains, then this stock can make a run at $13 or even higher.

Diamond Foods

Diamond Foods ( DMND) is a packaged food company focused on building, acquiring and energizing brands. Diamond specializes in processing, marketing and distributing snack products and culinary, in-shell and ingredient nuts. The stock is trading up 4.5% at $40.49 in recent trading.

Today's Volume: 1,410,000

Average Volume: 853,367

Volume % Change: 199%

From a technical standpoint, this stock is the poster child of an oversold equity. Shares dropped from its September high of $96.07 to a recent low of $38.45. The current relative strength index for DMND shows a reading of 20, which is an extremely oversold level.

Market players might want to consider this name for an oversold rebound play since with the market down large today, DMND is starting to move up on heavy volume. Simply use that low of $38.45 as a mental stop in case the stock isn't done going down.

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Salix Pharmaceuticals

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Salix Pharmaceuticals ( SLXP) is a pharmaceutical company engaged in acquiring, developing and commercializing prescription drugs used in the treatment of a variety of gastrointestinal disorders, which are those affecting the digestive tract This stock is trading up 7.6% at $37.30 in recent trading.

Today's Volume: 1,044,000

Average Volume: 949,841

Volume % Change: 165%

This stock is spiking higher today after the company said it turned a profit in the third quarter on rising sales of its drug Xifaxan, used to treat diarrhea and certain neurological problems. Salix also agreed to buy privately held Oceana Therapeutics for $300 million in cash.

From a technical standpoint, this stock has trigged a major breakout today now that shares have started to move above some near-term overhead resistance at $35.38. The next major resistance level that traders should watch is at $38.23. A high-volume move above $38.23 should set this stock up to ret-test its July high of $41.50.

Ligand Pharmaceuticals

Ligand Pharmaceuticals ( LGND) is a biotechnology company that focuses on drug discovery and early-stage development of pharmaceuticals that address critical unmet medical needs. The stock is trading up 2.9% at $12.31 in recent trading

Today's Volume: 204,000

Average Volume: 202,152

Volume % Change: 132%

From a technical standpoint, this stock is starting to move higher today in the face of massive market declines on solid volume. Shares of LGND plunged on Tuesday from close to $16 to just under $12 a share on high volume. The stock has some previous support worth noting at $11.50, and after that big drop yesterday, shares never violated its 200-day moving average of $11.68.

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Traders should put LGND on their radar for an oversold rebound play since the current relative strength index is showing a reading of 36, which is oversold. Look to use the 200-day as mental stop area in case the stock isn't done going down.

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SodaStream International

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SodaStream International ( SODA), along with its subsidiaries, is engaged in developing, manufacturing and marketing home beverage carbonation systems and related products. The stock is trading up 3.3% at $35.25 in recent trading.

Today's Volume: 5,900,000

Average Volume: 2,175,710

Volume % Change: 662%

This stock is trending higher today after the company reported record third-quarter earnings on continued strength in the Americas.

From a technical standpoint, this stock has started to break out today above some near-term overhead resistance at $35 on high volume. The next major resistance levels sit at $38.50 and $40.24.

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The 50-day moving average is $35.75, so look for SODA to sustain a move and close above the 50-day before it can even begin to challenge those next resistance levels.

Innophos

Innophos ( IPHS) is a North American producer of specialty phosphates. The stock is trading up 0.50% at $45.20 in recent trading.

Today's Volume: 82,500

Average Volume: 147,768

Volume % Change: 50%

This stock is trading up slightly toady after the company reported that net sales for the third quarter 2011 were $202 million, a 20% increase over the third quarter of last year.

From a technical standpoint, this stock is quickly approaching a big breakout if it can manage to trade above $45.50 to $46 on strong volume. Market players should look for a high-volume move above those levels that tracks in close to or above its three-month average action of 147,768 shares. This stock could easily re-test $50 to $51 if that breakout triggers, so keep a close eye on this name in the coming days and weeks.

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Barrick Gold

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Barrick Gold ( ABX) is engaged in the production and sale of gold, as well as related activities, such as exploration and mine development. It also produces copper and holds interests in oil and gas properties located in Canada through its oil and gas subsidiary, Barrick Energy. The stock is trading up 0.50% at $52.33 in recent trading.

Today's Volume: 7,013,000

Average Volume: 9,075,160

Volume % Change: 55%

From a technical standpoint, this stock is approaching a big breakout if it can manage to trade above some near-term resistance at $53.26 a share. A high-volume move above that level should set this stock up for a run back towards $55 to $56, or possibly even higher.

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Look for volume on any future breakout that tracks in close to or above its three-month average action of 9.07 million shares.

Barrick Gold was also featured recently in " 5 Rocket Stocks for Earnings Season."

For more ideas, check out the Stocks Rising on Unusual Volume portfolio.

-- Written by Roberto Pedone in Winderemere, Fla.

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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.

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