The P123 smallcap screen and easy to trade universe are excellent bases to overlay your own formulas etc with regard to a smallcap strategy and portfolio, from research normally good fundamentals are backed with volume above average, I have tried many volume formula using the various volume inputs in the P123 platform none are effective at capturing that period of volume activity which support the upside moves based upon growing corporate fundamentals, for example see this chart and the volume this month, any ideas with regard to volume formula !!
I think low volume rather than high volume is good in small caps.
However, it is true that some factors are used to capture the recent rise in volume.
Generally, a recent rise in volume is a good sign. Play around with variations on AvgVol(X) / AvgVol(X,Y), higher better.
thanks