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Key terms for this guide
These glossary pages cover the ideas and platform language most likely to matter as you work through this guide.
A spike is relative, not universal
Good volume spike tools compare current activity to recent activity. That means the same threshold can feel noisy on one instrument and almost invisible on another.
- Thresholds need to be tested on the actual instrument and chart style.
- A single universal number rarely survives contact with different markets.
- That is why spike tools are better thought of as relative context tools.
Pair spikes with location
A spike at a prior-session high, opening range boundary, or major channel edge is usually more informative than a spike in the middle of an unimportant rotation.
Feed quality still matters
The usefulness of a volume spike depends on the market and the feed. Always review what your platform is actually reporting before assuming the signal has the same meaning everywhere.
- The same indicator can be more trustworthy on one market than another.
- Poor feed quality should lower your confidence, not just your threshold.
- Structure and location become more important when the feed is weaker.
