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A spike is a fast movement in the last 30- 45 minutes of the day where the market moves fast from known reference points it has auctioned at during the day.Since value is not created the move cannot be accepted or rejected, hence the next day’s movement can only clear if it is a fake move or a genuine one.

If the spike is lower, then if the next day a move below spike low will invite additional selling. On the other hand a failure to take out the spike low will invite a move in the range of the entire spike.The same principle works in the opposite direction if the spike is higher.