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.
Colin Twiggs

Author: Colin Twiggs is a former investment banker with over 30 years experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary newsletter.

Colin also writes The Patient Investor newsletter which focuses on the global economic outlook and key macro trends.

In addition, he founded PVT Capital (AFSL No. 546090) which offers investment strategy and advice to wholesale clients.