Spikes

Jack Schwager covers spikes in his book, Technical Analysis.

A Spike High is identified by:

• a High sharply above the days on either side,
• a Close near the day's Low, and
• a strong preceding rally.

The more extreme each of these conditions are, the greater the likelihood of a reversal.

A Spike Low has:

• a Low sharply below the days on either side,
• a Close near the Day's High
• and must be preceded by a strong decline.