Geometric patterns are discovered by connecting high and low points of price movements. Chart patterns give the most reliable trading signals and can provide information about the future behaviour of instruments.
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Spikes are trend reversal patterns, but within a trend it has a continuation role. It is a continuation only when its direction matches the trend’s direction. In a decreasing trend, the spike points upwards. There is large trading volume at the beginning and at the end of the pattern.
Continuation Spike in Descending Trend Example
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