Description
Spike pattern starts with a sharp price decrease. The investors react the changes with panic. After the panic, the share price changes direction and stops on the platform for a short time. If the share price breaks this level, the pattern gives a reliable buying signal. If the platform is not formed, the pattern is not a spike and there is no trading signal. After the breakout from the platform, the trading volume increases, which helps to identify the pattern.
- Role: Reversal
- Expected trend: Bullish
- Previous tren: Bearish
- Reliability: Low
- Pattern: Spike
Reversal Spike in Descending Trend Example
