As ASND lifted out of a long bear market, its June addition to the SP500 Index triggered a 30-million share Power Spike day. In the next 5 months, price pivoted into the volatile spike price 21 times. The Silent Alarm At rare times, volume will issue a special Spike signal. These rare zones reflect intense crossroads of buying and selling pressure. Emotional trading swells volume but a painful standoff develops between bulls and bears.
Price sits still as friction reaches a boiling point.
Smart traders recognizing the Alarm will stand aside on these days but take positions in whatever direction price ejects out of that bar's range. Silent Alarms should not occur as a breakout through support or resistance. Price must remain trapped when the dust clears on that bar's activity. Try to verify prior emotional trading at the identical price through investigation of the chart history. Finally, make certain the high volume didn't reflect a pre-scheduled transaction, such as a secondary offering.