// Definition
A volume spike is a candle with volume far above the recent average, showing a sudden burst of activity.
Explained simply
Volume spikes appear during breakouts, sharp sell-offs, liquidations and news events. They show that many traders acted at the same time.
A spike in the direction of a breakout supports the move. A spike with a long wick can instead show strong rejection at that price.
Tip
Read the candle that comes with the spike. Volume tells you how strong the activity was, the candle tells you who won.
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For education only, not financial advice. Trading is risky and you can lose money.