Volatility is an essential element for short-term stock trading. As volatility increases, so too does the number of potential opportunities to trade.
In this guide, we’ll explain what volatility is and why traders should care about it. Then, we’ll show you how to find the most volatile stocks right now using Scanz — with a real-time scanner you can customise to your exact strategy. You can also get a daily report of the top movers when you sign up for the free Market Movers newsletter.
What is Volatility?
Volatility is a measure of the spread in a stock’s price within a given period of time. Unlike percent change, which tracks how much a stock’s price has gone up or down since market open, volatility accounts for all the changes in a stock’s price throughout the day. Put another way, volatility measures the variability in a stock’s price around its average price.
The best way to understand volatility is with an example. Say a stock opens at $120 and, as the market session progresses, it never moves lower than $119 or higher than $121. That stock has low volatility because the price is relatively static.
On the other hand, say the same stock drops to $105, then shoots up to $140, and finally drops back to $120. In that case, the stock would be considered highly volatile because the price fluctuates significantly in a short period of time.
Why Do Traders Care about Volatility?
Traders care about volatility because it creates opportunities for trading. The more volatile a stock is – that is, the more widely and frequently its price fluctuates throughout the day – the more opportunities there are to buy and sell for a profit.
While low volatility stocks can be traded, smaller price changes require a bigger investment to achieve the same profit. High volatility stocks offer bigger profit potential. Of course, that also means that high volatility stocks carry more trading risk.
The Importance of Liquidity
One important thing to remember when looking for high volatility stocks is that volatility on its own isn’t sufficient for trading. Traders need stocks with both high volatility and high liquidity.
Low liquidity can cause high volatility simply because it’s difficult to buy and sell shares. Typically, it’s best to avoid low liquidity stocks because it can be hard to enter and exit trades, which exposes you to more risk. It’s much simpler to enter and exit positions when trading high volatility stocks that also have high liquidity.
How to Find the Most Volatile Stocks Today
Scanz offers a few different ways to find the most volatile stocks on the market right now.
Scanz Market Movers
The easiest way to find volatile stocks with Scanz is by using Scanz Market Movers. This list is put together by our team every trading day in mid-morning. You can quickly see the top 10 gainers and losers on the NASDAQ and OTC markets, as well as the top 10 stocks with the greatest amount of trading activity.
It’s a simple way to get an overview of the most volatile stocks on the market without even having to run your own scan.
Data Scanner — Simple Volatility Scan
For a hands-on scan, the Data Scanner is the fastest way to find volatile stocks in real time. The Scanner updates every 500ms — so you’re seeing what’s moving right now, not a snapshot from minutes ago.
Start by adding a Trades | RH filter (Liquidity category) with a minimum of 1,000. This eliminates low-liquidity stocks from your results — volatility without liquidity means you can’t enter or exit cleanly.
Then add Percent Change | RH set to 5 or higher. This surfaces stocks already making a meaningful move during the session.
Sort your results by Percent Change to see the biggest movers at the top. You can also sort by Relative Volume to see which stocks are attracting the most unusual trading activity relative to their historical average.
Your custom scan settings auto-save under My Scans in the left sidebar — ready every morning without rebuilding.
Data Scanner — Advanced Volatility Scan
For a more precise scan, combine relative volume with price movement in the Data Scanner:
- Relative Volume >= 2 — flags stocks trading at twice their normal daily pace
- Percent Change | RH >= 5 — confirms the stock is already moving
- Trades | RH >= 1,000 — eliminates low-liquidity stocks
The Relative Volume filter is the key addition here. A stock up 5% on normal volume is less interesting than the same move on 2x volume. Volume confirms there’s genuine interest behind the move, not just thin-market drift.
Breakout variation — to find stocks showing intraday strength with volume confirmation:
- Relative Volume >= 2
- Last Price >= VWAP — stock is holding above its volume-weighted average price
- Percent Change | RH >= 5
- Trades | RH >= 1,000
Stocks holding above VWAP on elevated Relative Volume often sustain their move rather than fading quickly.
Never Miss a Move — Signal Scanner and Alerts
Once your volatility scan is set up, the next step is making it proactive.
The Signal Scanner fires the moment a specific event occurs. Where the Data Scanner shows you what’s matching right now, Signals tell you when something just happened. For volatile stocks, set up a New High (Regular Hours) signal with the same Relative Volume and Trades filters as your Data Scanner scan. You’ll be notified the instant a stock matching your criteria makes a new intraday high — no refreshing required.
For stocks already on your radar, add them to a Watchlist and set price-level Alerts on each. When the level is hit, Scanz notifies you via sound, in-app notification, or email. Alerts let you define exact conditions — a specific price, a Relative Volume threshold, a technical level — on individual tickers you’re tracking.
Volatility by Sector
Not all volatile stocks are the same. Biotech stocks are structurally volatile — FDA catalysts can move a stock sharply in minutes. Energy stocks respond to macro events. Small-cap momentum names tend to move on volume alone.
When scanning for the most volatile stocks today, consider narrowing your results by float or market cap to match the type of volatility that fits your strategy:
- Low float stocks (under 20M shares): High volatility potential, news-driven moves, higher risk — use the Float filter in the Data Scanner
- Micro-cap stocks (under $300M market cap): More volatile than large caps, prone to significant intraday swings — filter by Market Cap
- News-driven plays: Pair any scan with a News Count filter (minimum 1) to surface stocks moving on a catalyst, not just on thin volume
Frequently Asked Questions
What makes a stock volatile?
A stock becomes volatile when there’s an imbalance between buyers and sellers — typically triggered by news, earnings, a sector catalyst, or unusual trading activity. Low float stocks (few shares available to trade) amplify this volatility because even moderate buying pressure can cause large price swings.
What’s a good volatility level for day trading?
Most day traders look for stocks with at least 5–10% intraday movement and sufficient liquidity (1,000+ trades) to enter and exit positions cleanly. Volatility without liquidity creates risk — you can get into a position but struggle to get out at the price you want.
How do I find the most volatile stocks before the market opens?
Run a pre-market scan in Scanz filtering for Percent Change | PM and Volume | PM to catch gap-ups before the session starts. Stocks showing strong pre-market activity with a news catalyst are typically the most active in the first hour of trading. Set Alerts on your key price levels before 9:30 AM so you’re notified the moment price moves.
What’s the difference between volatility and volume?
Volume measures how many shares are trading. Volatility measures how much the price is moving. A high-volume stock isn’t necessarily volatile — it might be a large-cap trading its normal daily volume with minimal price movement. Relative Volume (comparing current activity to historical norms) is more useful than raw volume for finding unusual movers.
Is high volatility good or bad for trading?
It depends on your strategy. High volatility creates more opportunity for profit — and more risk of loss. Day traders and momentum traders typically seek high volatility. Long-term investors generally avoid it. The key is pairing volatility with liquidity: volatile stocks with low trading activity are difficult to enter and exit safely.
Conclusion
Finding the most volatile stocks today comes down to having the right scan running and the right alerts in place. Start with Market Movers for a quick daily overview. Build your Data Scanner scan around Percent Change, Relative Volume, and Trades to surface stocks moving on genuine conviction. Add a New High signal and Watchlist alerts so you know the moment your setups form — without watching the screen all day.
With the right setup, you’re not hunting for volatility. It finds you.
Start your 7-day free trial. Scanz Starter and Pro both include the real-time Data Scanner, Signal Scanner, and 65+ filters — everything you need to find the most volatile stocks every session. Try Starter or Pro today. No commitment, cancel anytime.