What indicates an upward spike on a price chart?

An upward spike on a price chart is indicated by a day with higher highs compared to the surrounding days. This occurs when the price reaches a level that exceeds the maximum price of the previous days, signifying strong buying interest or positive market momentum. Such a pattern suggests that buyers are willing to pay higher prices, reflecting an upward trend and potentially signaling the beginning of a bullish phase.

In technical analysis, identifying these spikes is crucial, as they can often lead to new support levels or indicate a significant market shift. The ability of the price to break through previous highs can also attract additional buyers, further reinforcing the upward movement. This characteristic distinguishes an upward spike from other price movements that either stagnate or decline, which don't demonstrate the same bullish sentiment.