Spike is a non-market quote.
On the chart, a spike may look as follows:
Indications of a non-market quote include, but are not limited with:
- a significant change in price within a few seconds;
- the return of the price to its original level;
- lack of a characteristic news background.
The main reason for a non-market quote is a technical failure. For example, the liquidity provider sends the following price flow to the broker: "99.00; 100.00; 100.00; 101.00; 100.00; 99.00". As a result of a technical error, the flow looks like ""99.00; 100.00; 100.00; 10.100; 100.00; 99.00"; therefore, we see a "falling" movement on the chart for 1 second.
Since the prices are non-market, the transactions made on them are cancelled and the spike on the chart is deleted.