Why a spike can look like a fake and be real

[Shadow Trader]

A sharp spike followed by an immediate reversal looks like a fake. Often it's a real liquidity event: price moved to a level where it found orders, those orders were executed, and then the market returned.

The spike's shape is the clue. A real liquidity sweep goes straight through a known level, such as a prior high, and reverses without lingering. The extreme is reached in a few seconds, and the reversal is similar in speed.

For scalpers, the distinction matters for the next decision. A sweep suggests that the stops above the level were cleared, and that the move up may be finished. A glitch suggests nothing about direction.

Many traders label any spike as a stop hunt without checking. A second feed is a cheap tool that adds clarity.

How often has a spike turned out to be a feed glitch rather than a genuine sweep?