Spike - a candlestick trend reversal pattern
Candle model "Spike" characterizes a strong signal of change in the direction of the trend, so it is referred to the reversal figures of technical analysis.
Formation of the "Spike" candlestick pattern
The candlestick pattern "Spike" is formed after a strong, almost steep movement up or down, and the same sharp, impulsive movement in the opposite direction. Because of this, a pattern with a sharp end is formed on the price chart, which is called "Spike".
As a rule, price movements in either direction are quite fast and are characterized by long candles without consolidation zones at the bottom or top.
Trading with the candlestick model "Spike"
When a candlestick pattern appears "Spike" on various timeframesIt is recommended to open a position after the formation of the wedge in the opposite direction to the initial trend, as price movements near the bottom/top of the pattern are sharp and it is very dangerous to open a position there. The target on a candlestick figure "Spike" is not measured.