What counts as an artificial spike
An artificial spike is a sharp, short-duration move that occurs when liquidity conditions are temporarily distorted. Price can jump through thin levels quickly and then mean-revert once normal depth returns.
Why spikes can be deceptive
Not every breakout reflects strong directional conviction. If a move is driven by temporary order book imbalance or cancelled liquidity, late entrants can be trapped when the market snaps back.
Using the signal in practice
High artificial-spike readings suggest validating breakouts with follow-through metrics before committing size. Sustained volume, stable spreads, and persistent depth shifts help separate real trend continuation from transient microstructure noise.