Spike Rules

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If the previous day auction ends in a spike then spike rules apply for the next morning’s open.

 

If Open is below Spike lows then the price probe is lower and new shorts can be initiated with stops above spike lows

 

If Open is above spike highs then new longs can be initiated with stops just below the spike highs

 

If Open is between spike highs and lows then the auction continues in the spike zone and the previous day’s spike is assumed to be caused by Old Business.

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