All language subtitles for 005 Spikes!_en

If you started playing around and looking at like charts and things like that, you've probably noticed

spikes right where you see this high, low range all of a sudden is noticeably different than the others,

right?

They me just spikes upward spikes down.

You know something, something's happened, right?

And it really is a dramatic thing compared to the other price bars that are preceding it.

And it kind of gets your attention because it's dramatic, right?

It's breaks the spikes outer.

Something is half of the price where the range has gotten really broad, really fast all within a day,

let's say, on a daily price bar and you want to ask yourself when you see spikes, is is it true?

Is it a true reversal?

Something really dramatic happened.

There's a big event, something that's happened that is going to cause that security to trend in a certain

in different ways or a reversal come around.

It's going to be just something dramatic has happened.

Or is it something that's more temporary like a panic or or rumor that came out that's going to crack

maybe in the next day or so?

You know where it's like this big spike?

And then everybody's like, Oh, much ado about nothing, right?

So those are the kinds of questions when you're looking at spikes and when you're playing your technical

analysis to a spike, is it true or is it not true?

And you can see them on a chart like, let's look at our chart again here and you can see this big red

spike to the right, right?

So you can see that this big red spike and what do we know from learning about our price bar as we can

see that open verite on that particular red, that red spike that opened up pretty high open up and

that would open up much higher than the day before you look at that black bar right preceding it.

You can see where the close was and also where the price spiked way up.

Right.

But then why is the bar red indicating it was a down day when it spiked way up?

Well, what happened is it got way up there, something where people are anticipating something or something

was going on.

Also, people figured out, traders figured out, Oh my gosh, this is not good news.

This is actually really bad news.

So then no one's spiking all the way down.

And that's where you can see where the closing is on that red bar to the right.

Where that's the closing price is, well, well below the previous day's, you know, the previous day's

open and close so open to a high something was going on and people are trading at a high and and boom

and went way, way down.

And I'm not sure why, but this is a great example of this particular one weighed down and closed way

down.

Also, you noticed that the volume bar, the bar on the bar in the bottom all of a sudden also spiked

up to so our volume increase there was a lot of trading activity.

Remember, we as we know, if there's a lot of volume that can be more of a confirming event that something

real might be going on.

And usually when you see spikes, you're going to see, you know, that horizontal bar get, you know,

pretty high because something's happened and causing a lot of things, a lot of action on that particular

security.

Now what we'll want to do is and figure out, you know, let it, you know, what's happening here and

do we want to invest in it?

And maybe there's some news that we say.

We believe in the news.

And so we're buying or selling based just on that news.

But if we were looking at technical analysis or looking at trends, you know, we might say this is

really getting wild here with the spike, it definitely closed down.

I might want to be watching early the next day with the opening, where does it open the next day and

what might be going on so I can see if there's a trend going on it look like previous to that, there

was somewhat of a of an uptrend, you know, you know, going, you know, definitely least for a couple

of days or is going up as far as you know, going up to three days in a row went up, but then it went

way down at the end after a big jump up.

So that's a spike.

That's what a spike might look like.

And then if we look at it like, well, what did in fact happen with this actual stock?

This is real stuff that really happened.

And we look at that we can see like, oh, the bars turned black.

So that means their prices are going up, as with prices going down in the red.

Volume went down, but you can see after it closed the way down in the red bar or red price bar, it

opened just a little bit higher.

And then through the trading day, it had a more normal or narrower trading range and closed up higher,

actually significantly higher, and then looks like it started a little bit of an uptrend.

You can see the closing bars or the tick marks on the right the following day and went up a little bit,

then up a little bit more and then up again.

So, you know, something happened to cause a reversal for one day in that previous trend, but it looks

like it got back on an upward trend.

So, you know, that's how we could evaluate that spike.

Now, if it went the opposite way, the spike could have proven to be true as far as trend reversal.

And we're now going to had a big, big downtrend.

And if we just expanded it further, going back in time, you can see that big red spike in the middle.

We had our little uptrend.

And what happened is we then went into a downtrend.

But all these things that are happening, we're going to use.

We would have been using our technical indicators to identify when these trends are forming and where

they're not forming and when there might be reversals.

So we're getting in and out at the appropriate times as the idea behind this.

But be aware of spikes because, you know, there are something that's really dramatic some.

Dramatically is happening.