I can't really speak to a single candle spike. As to it having any indication for future price movement. I'd lean toward a single spike, just being a mistake order or anomaly. But if you see several candle spikes, over a few weeks, it generally indicates the retail phycology. Remember sentiment is short term traders and phycology is long term investors.
Several candle spikes indicate investor have been expecting up or down, waiting for sentiment to move that direction. So investors will buy on any positive, sell on any negative, price action. Often too early. Then you see these mistakes in judgment in several candle spike, which correct.
In these cases, eventually the investors get what they expect. As investors tend to do more research then traders. And plan on that research happening, while holding for a decision confirmation in sentiment. And if several candle spike mistakes are seen, odds are you know the expectation of investors.
Usually investor phycology is correct.
TIP: Several candle tails up over a few weeks/month or so, expect a climb. Several down, expect a retrace.
