When it comes to spikes, practically everyone knows the general idea from technical analysis.
To be more precise, and following the work of Jack D. Schwager—author of many books, including the famous "Market Wizards"—we can define spikes more accurately.
Spikes are often identified subjectively. However, Schwager provides a precise definition:
Spikes high:
Ht - Max(Ht-1 , Ht+1) > k * ATR
Thus, in this case the conditions tell us that the spike high will exceed the highs by an amount at least equal to a quarter (0.25) of the past 10 days(ATR).
To be more precise, and following the work of Jack D. Schwager—author of many books, including the famous "Market Wizards"—we can define spikes more accurately.
Spikes are often identified subjectively. However, Schwager provides a precise definition:
Spikes high:
Ht - Max(Ht-1 , Ht+1) > k * ATR
- Ht = high of the current day
- Ht-1 = high of the previous day
- Ht+1 = high of the following day
- k = multiplicative factor (chosen by the trader eg: 0.25)
- ATR = Average True Range (eg: 10days)
Thus, in this case the conditions tell us that the spike high will exceed the highs by an amount at least equal to a quarter (0.25) of the past 10 days(ATR).
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Instagram: afcapital
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.