How to Find the Best Penny Stocks Before They Explode — Using Volume, News Scanners & Smart Criteria

Every trader dreams of finding the next breakout penny stock before it runs — but the secret isn’t guessing which ticker will move. It’s understanding why it moves. In this guide, you’ll learn how to identify high-potential penny stocks using volume analysis, news catalysts, and smart scanning tools — just like the pros do inside the Prodigy Trading Team community.

Understanding Penny Stocks

Penny stocks trade at a low price but often come with massive volatility. The key isn’t chasing hype — it’s finding legitimate momentum before the crowd sees it. Most of the biggest movers begin with one simple signal: unusual volume.

1. Watch for Relative Volume Surges

Volume tells you when money is entering a stock. A stock trading higher than its normal average volume is often the first clue that something is happening — a news release, accumulation, or early breakout. When you see volume rise before price, pay attention.

At Prodigy, we track these shifts with real-time volume scanners that alert our community the moment a stock starts heating up. These alerts allow traders to react early and study patterns that lead to powerful breakouts.

2. Use a News Scanner to Stay Ahead

News is the spark that often ignites penny stock momentum. Earnings, FDA approvals, partnerships, or even sector headlines can trigger big runs. A simple tool like Finviz.com helps traders screen for stocks with breaking news and rising volume at the same time — a combination that can uncover potential gems before they’re on everyone’s radar.

News Keyword Watchlist: What to Pay Attention To

When using news scanners or reviewing PR headlines, certain keywords can instantly signal opportunity. Here’s how Prodigy traders categorize them:

3. Filter Out the Noise with Smart Criteria

The challenge with penny stocks is separating real momentum from manipulation. That’s why we focus on precision-based criteria to eliminate 90% of noise. Our system filters for:

• Unusual volume spikes with confirmation candles
• High relative strength vs. the overall market
• Clean chart structure and pattern formation
• Stocks holding support after strong morning runs

This helps us focus only on high-probability setups — stocks that show true institutional or smart-money interest.

4. Use Prodigy’s Real-Time Volume & Momentum Scanners

We use one of the most advanced scanners available, customized with Prodigy’s proprietary filters. It alerts us instantly when a stock hits new highs, spikes in relative volume, or shows early signs of momentum. Our system continuously updates every minute — identifying top gainers, new highs of day, and heating tickers in real time.

These alerts are exclusive to our Prodigy Discord — they’re not shared anywhere else.

5. Combine Education with Experience

We offer free stock alerts to help traders learn how to recognize setups in real time. These are meant to assist with ideas and provide educational value — not financial advice. Every trader should perform their own due diligence before taking a position.

Disclaimer: Prodigy Trading Team does not provide financial advice. All alerts and information are for educational and informational purposes only. Use our community and insights to learn how experienced traders think, analyze, and act — then apply those lessons independently.

6. Ready to Go Beyond Free Alerts?

If you’re ready to take your trading to the next level and get access to premium watchlists, early breakout ideas, and advanced trading setups, join our Gold Membership today.

Subscribe to Prodigy Gold Membership

Join the Prodigy Discord

Get real-time alerts, volume scanners, and educational discussions that help you trade smarter — not harder. Our community thrives on collaboration, strategy sharing, and constant market learning.

Join the Prodigy Trading Team Discord

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Read next: Volume Trading Strategy — How to Catch Breakout Stocks Before They Run