Spike

A spike is an extreme high or low of in a day's share price action. And where the market spends little time.

Hence, traders expect a given price to settle down to a more normal level within an hour or so - unless there are specific circumstances such as a takeover offer. The result is a single spike bar (or maybe more than one bar) on a daily share price chart.

See Also: Online share dealing service Stockmarket Centre

Last Updated: April 2008 © Moneyextra.com

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