EURUSD 1.1860 USDJPY 111.61 USDCAD 1.2371 EURCZK 26.031 USDCZK 21.944 EURPLN 4.2728 USDPLN 3.6032
EURUSD 1.1860 USDJPY 111.61 USDCAD 1.2371 EURCZK 26.031 USDCZK 21.944 EURPLN 4.2728 USDPLN 3.6032

Start real trading in just 30 minutes

Start real trading in just 30 minutes

Micro-lots with no minimum deposit!

Open demo account MetaTrader5

Open demo account MetaTrader5

Opening demo account is the first step

Demo account in MetaTrader 4

Demo account in MetaTrader 4

All-time trading platform classic

For beginners

For beginners

Learn the basics of financial markets

Spikes are formations that reflect short-term market volatility, predicting a possible trend reversal

Rule of thumb

On a Japanese candle chart, the spike formation will be represented by a candle with an extraordinarily long candle shadow in the direction of a trend preceding it

Chart type: Bar chart

Applies to: Reversal

Significance: Medium

 

This formation often occurs soon after economic news releases, when the markets account for high volatility. This formation consists of one vertical very long bar/candle which can be a spike “top” for upward trend reversals or spike “bottom” for a downward trend reversal.

 

spike, one day reversal

 

In the case of a spike “top” there is a visible upward trend leading to that formation.  At the moment of  a spike, the price practically “jumps”, making a one clearly outstanding vertical bar in comparison with the rest of the chart. One important factor when considering this formation is that for the spike “tops”, the closing price must be lower than  an opening price, and should be near the “low price” of the period. Only then is  a formation complete and its interpretation is that a considerable downward price movement can be expected. 

 

How to use it with MetaTrader 5:

  • For the bar chart view, select the [bar chart button] icon from the MT5 main panel.
  • In an upward trend or downward trend, identify a bar which  is considerably longer in length than the previous ones.
  • Ensure that in a spike top (spike bottom) the closing price is lower (higher) than the opening price of  a bar, and the close price is near the “low price” (“high price”).

Pola oznaczone gwiazdką są wymagane.

zamknij