๐ Lesson 28: Spike (Stock Chart)
A Spike is a sudden and sharp movement in price โ either up or down โ seen as a long vertical candle on the chart.
It usually happens because of unexpected news, high trading volume, or market manipulation.
If the spike is upward, it may be followed by a quick drop. If itโs downward, a fast bounce back may happen.
Traders should always wait for a confirmation candle before reacting โ because spikes often trap emotional traders.
