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.
Author: Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.