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Day Trading

Short Volume Tracker

Daily short volume ratios and trend changes across every stock. See where short sellers are building positions before the move.

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What is this pattern?

Origin & History

Detection Criteria

Our scanner evaluates the following criteria when detecting Short Volume Tracker setups across 5,000+ stocks daily.

Daily short volume ratio (short volume / total volume)
A ratio above 40-50% signals heavy short activity. Extreme readings often precede either continued pressure or violent reversals.
5-day average short volume ratio
The 5-day average smooths out single-day noise. Comparing today's ratio to the average reveals whether shorting is accelerating or fading.
Rate of change in short volume ratio
A 20%+ increase vs the 5-day average means shorts are piling in aggressively — this is where the setup begins.
3-day trend direction
Three consecutive days of increasing short volume ratios signals sustained bearish conviction — or the setup for a squeeze if price holds.
Price action vs short pressure
Price rising despite elevated short volume is the squeeze signal — shorts are trapped and forced to cover, adding buying pressure.

Grading Breakdown

For short volume setups, an A+ grade means a short volume ratio above 50% with a 20%+ increase vs the 5-day average, an increasing 3-day trend, price rising despite shorts (squeeze pressure), and price above the 50 SMA. Lower grades indicate less extreme short volume ratios or fewer confirming signals. This is not a prediction of future price movement — it is a way to prioritize which charts deserve your attention first.

A+
Textbook setup — strong confluence across all criteria. Highest conviction.
A
High-quality setup worth watching closely. Minor criteria may be slightly off.
B+
Decent setup with some reservations. One or two criteria fall short of ideal.
B
Pattern detected but lower conviction. Use as a watchlist candidate, not a trade trigger.

How to Trade This Pattern

Entry

Watch for rising short volume ratios combined with price holding or rising — the squeeze pressure builds before the snap. Enter when price breaks above a consolidation level with increasing volume.

Stop Loss

Below the recent swing low. If price breaks down on expanding short volume, the shorts are winning — step aside.

Price Target

Short squeezes can be violent. Take partial profits on the first 5-10% pop and trail a stop on the rest. The move often exhausts quickly.

This is educational content only. Not financial advice. Always do your own research and manage risk appropriately.

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AskLivermore scans 5,000+ NASDAQ and NYSE stocks daily · Not financial advice · Past performance does not guarantee future results