Spikes High and MathsGOLD (US$/OZ)TVC:GOLDAFCapital21When 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 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 bt an amount at least equal to a quarter (0.25) of the past 10 days(ATR).