As of 09/18/2020
  Indus: 27,657 -244.56 -0.9%  
  Trans: 11,432 -120.44 -1.0%  
  Utils: 798 -12.86 -1.6%  
  Nasdaq: 10,793 -117.00 -1.1%  
  S&P 500: 3,319 -37.54 -1.1%  
YTD
-3.1%  
 +4.9%  
-9.2%  
 +20.3%  
 +2.7%  
  Targets    Overview: 09/14/2020  
  Up arrow29,400 or 26,700 by 10/01/2020
  Up arrow11,750 or 10,600 by 10/01/2020
  Up arrow845 or 775 by 10/01/2020
  Up arrow11,800 or 10,400 by 10/01/2020
  Up arrow3,600 or 3,200 by 10/01/2020
CPI (updated daily): Arrows on 8/18/20
As of 09/18/2020
  Indus: 27,657 -244.56 -0.9%  
  Trans: 11,432 -120.44 -1.0%  
  Utils: 798 -12.86 -1.6%  
  Nasdaq: 10,793 -117.00 -1.1%  
  S&P 500: 3,319 -37.54 -1.1%  
YTD
-3.1%  
 +4.9%  
-9.2%  
 +20.3%  
 +2.7%  
  Targets    Overview: 09/14/2020  
  Up arrow29,400 or 26,700 by 10/01/2020
  Up arrow11,750 or 10,600 by 10/01/2020
  Up arrow845 or 775 by 10/01/2020
  Up arrow11,800 or 10,400 by 10/01/2020
  Up arrow3,600 or 3,200 by 10/01/2020
CPI (updated daily): Arrows on 8/18/20

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
Other Examples
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).

Spikes/Tails: Other Examples

-- Thomas Bulkowski

Top of page More

See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

My novels:  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

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