What a Volume Spike at Resistance Actually Tells You
A sudden bar of heavy volume at a level you have marked for weeks is not automatically bullish. Here is how we teach traders to read who is likely absorbing whom.
Resistance is a price level where selling interest has historically appeared. When price approaches that level again, many traders watch for a breakout. Volume is the piece that tells you whether the break is being accepted or rejected.
In our workshop we use a simple three-part read. First, compare the current bar's volume to the twenty-bar average at that level. A spike above one-and-a-half times the average deserves attention, but direction matters. Second, note where the close sits within the bar. A spike with a close in the upper third suggests buyers held the auction. A spike with a close near the open often means sellers absorbed the buy orders. Third, look at the next one to two bars. Confirmation volume should not collapse immediately; a hollow follow-through bar is a warning sign we mark in red on practice charts.
Thai market hours bring lunch-time lulls that distort intraday volume averages. We adjust by comparing to the same time slot over prior sessions rather than raw session totals. This avoids chasing a spike that is merely a return to normal activity after a quiet morning.
Keep a screenshot folder labelled 'failed spikes.' After a month you will see your own recurring mistake—usually entering on the spike bar instead of waiting for the close and the next bar's volume profile.
Want hands-on practice? See our Breakout Volume Confirmation Workshop or contact the studio.