How to Identify Reversals in 6A AUD/USD Using Volume Spikes
6A reversals don’t appear out of thin air. They show up when volume spikes hit key levels and the market rejects price with force. If you learn to read these spikes correctly, you’ll stop guessing tops and bottoms and start catching actual turns.
Why volume spikes matter in 6A
AUD/USD futures are driven by order flow. When larger players step in, volume jumps immediately. One well-timed surge at a key level often tells you more than any indicator. This lines up with the volatility bursts described in the 6A volatility clusters guide.
The three types of reversal volume spikes
1. Exhaustion Spikes
These happen at the end of a trend when trapped breakout traders get smoked. Signals:
- Huge volume at the extreme
- Wick rejection
- Follow-through in the opposite direction
2. Absorption Spikes
Price tries to break a level but large resting orders absorb the move. What to look for:
- High volume but weak candle body
- Repeated taps failing to break through
3. News-Driven Reversal Spikes
U.S. data or major China releases can blast the chart in both directions before price snaps back to where the real positioning is. These reactions often line up with the setups explained in the economic report impact guide.
Where volume reversals usually happen
- Major monthly levels
- Session highs/lows
- Prior day’s high/low
- Liquidity pockets from consolidation zones
If the level is garbage, the reversal is garbage. Simple.
Confirmation signals that actually matter
Don’t rely on one spike. Look for:
- Break of structure after the spike
- Failure to continue the prior trend
- Slow grind back into the spike’s origin
A simple 3-step method for trading 6A reversal spikes
Step 1 — Identify the spike at a key level
Volume must be significantly above the last 20–40 bars.
Step 2 — Wait for structure break
Reversals require a shift. No break = no trade.
Step 3 — Enter on the pullback
Do NOT enter at the spike. Wait for price to return to the spike zone.
Bottom line
Volume spikes expose exhaustion, absorption, and fakeouts in 6A. Combine them with clean levels and structure breaks and you’ll catch reversals without gambling. Ignore volume and you’re trading blind.