All language subtitles for 3. Spikes!

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

spikes right where you see this high, low range motion is noticeably different than the others.

Right?

It just spikes upward, spikes down.

You know something?

Something's happened.

Right.

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

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

It's the spikes out there.

Something is happening.

The price for the range has gotten really broad, really fast, all within a day.

It's a daily price bar.

And you want to ask yourself when you see spikes, is is it true?

Is it a true reversal or something really dramatic happen?

There's a big event.

Something has happened that is going to cause that security to trend in a certain in a different way.

Is there a reversal come around?

It's going to 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 correct maybe in the next day or so, you know, where

it's like this big spike and everybody's like, oh, much ado about nothing, right?

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

analysis to a spike, is 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 bias?

We can see that opened very on that particular red that red spike there.

It opened up pretty high open up if they did 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 way 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 it went 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

prices well well below the previous days.

The previous day's open and close, so open to real high, something was going on.

People are trading at a high enough 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 notice that the volume bar, the bar and the kind of bar in the bottom.

Olson also spiked up, too.

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 pretty high

because it's something's happened and causing a lot of things, a lot of action on that particular security.

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

and do we want to invest in it now?

Maybe there's some news and 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 and we're looking at trends, you know, we might say this

is really getting wild here with the spike and definitely close down.

I might want to be watching early the next day with the opening.

Where does that 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, going, you know,

definitely for a couple of days or is going up as far as, you know, going up actually 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 turn black.

So that means that prices are going up as prices going down in the red volume went down.

But you can see after it closed way down in the red bar or red priced bar open 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, 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 then 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 is the idea behind this.

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

Some.

Nothing dramatically is happening.