As of 08/12/2022
  Indus: 33,761 +424.38 +1.3%  
  Trans: 15,147 +74.16 +0.5%  
  Utils: 1,042 +15.91 +1.6%  
  Nasdaq: 13,047 +267.38 +2.1%  
  S&P 500: 4,280 +72.88 +1.7%  
YTD
-7.1%  
-8.1%  
 +6.2%  
-16.6%  
-10.2%  
  Targets    Overview: 07/28/2022  
  Up arrow34,500 or 31,850 by 09/01/2022
  Up arrow16,300 or 14,300 by 09/01/2022
  Up arrow1,075 or 990 by 09/01/2022
  Up arrow13,600 or 12,000 by 09/01/2022
  Up arrow4,325 or 4,000 by 09/01/2022
CPI (updated daily): Arrows on 7/15/22
As of 08/12/2022
  Indus: 33,761 +424.38 +1.3%  
  Trans: 15,147 +74.16 +0.5%  
  Utils: 1,042 +15.91 +1.6%  
  Nasdaq: 13,047 +267.38 +2.1%  
  S&P 500: 4,280 +72.88 +1.7%  
YTD
-7.1%  
-8.1%  
 +6.2%  
-16.6%  
-10.2%  
  Targets    Overview: 07/28/2022  
  Up arrow34,500 or 31,850 by 09/01/2022
  Up arrow16,300 or 14,300 by 09/01/2022
  Up arrow1,075 or 990 by 09/01/2022
  Up arrow13,600 or 12,000 by 09/01/2022
  Up arrow4,325 or 4,000 by 09/01/2022
CPI (updated daily): Arrows on 7/15/22

Bulkowski on Spikes/Tails

My book, Getting Started in Chart Patterns, Second EditionGetting Started in Chart Patterns, Second Edition book., pictured on the left, has a section titled, "Spikes and Tails," starting on page 212, that may interest you.

If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.

-- Tom Bulkowski

$ $ $

Spikes, or tails as they are sometimes called, represent short-term price turning points. Bullish spikes plunge downward and are more reliable than those that tower upward. This may be due to the upward bias the stock market has shown over time (for proof, look at the price of the Dow in the 1920s -- it was below 400).

 

Identification Guidelines
Trading Tips
See Also

Spikes/Tails chart pattern

Spikes/Tails Chart Pattern

Spikes/Tails: Identification Guidelines

CharacteristicDiscussion
Price trendCan be any direction leading to the pattern, but is usually in the direction of the spike (downward for bullish spikes, upward for bearish spikes).
ShapeA tall price move with the closing price near the base of the spike.
Closing priceFor upward spikes, the close should be near the intraday low. For downward spikes, the close should be near the intraday high.
VolumeUsually heavy.
Bullish spikePrice spikes downward before closing near the intraday high. Price often represents a low turning point.
Bearish spikePrice spikes upward but closes near the intraday low. Price often forms a peak but usually does not represent a major or sustained turning point.
Wait a dayWait a day to be sure that the price spike stands alone like the above picture shows.

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Spikes/Tails: Trading Tips

Trading TacticExplanation
Upward spikeFor swing traders, expect a downward price swing. The turn may not last long, however.
Downward spikeDownward spikes represent more reliable price turning points than do upward ones. Buy once it's clear the spike or tail stands alone like a tall pine tree on a barren hill (that is, if you can imagine the hill and tree upside down).
Short termBoth upward and downward price spikes usually represent short-term turning points. Thus, don't expect price to make a major and lasting trend change.
CautionBe cautious with spikes where the close is not near the intraday low (upward spike) or high (downward spike).

-- Thomas Bulkowski

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See Also

 

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Legal notices: "As an Amazon Associate I earn from qualifying purchases." Paid links).

My novels:  Bedroom to Boardroom bookBedroom to Boardroom book Remember Me bookRemember Me book Bumper's Story book Head's Law book

Chart Patterns: After the Buy Getting Started in Chart Patterns 2nd edition book Trading Basics book Fundamental Analysis and Position Trading book Swing and Day Trading book Encyclopedia of chart patterns book Encyclopedia of Chart Patterns 3rd Edition book Trading classic chart patterns book


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