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A volume spike is a sudden, abnormal surge in the trading volume of a security that significantly exceeds its historical average. Volume spikes often accompany important market events—earnings announcements, regulatory developments, merger news, or broad market shocks—and typically precede or coincide with sharp price moves. Technical analysts treat a high-volume price breakout as a more credible signal than a low-volume one, as it suggests strong conviction behind the move. Conversely, a volume spike with little price movement can indicate distribution—large sellers offloading positions into buyer demand—a potentially bearish sign.