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The Way to Trade: Discover Your Successful Trading Personality by John Piper

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Chapter 20: SPIKY ACTION

“Spiky action” sums up my preferred approach to markets. In Chapter 18 I talked about Minus Development (MD) and the best form of

MD, in my opinion, is price spikes.

This is a fairly short chapter and I have made it a separate chapter because I think this is vitally important. Everyone who comes to the market needs an edge, something that gives them a chance above average. Spikes do this for two reasons – see Figure 20.1:

  1. Spikes tend to show you the direction of the Trading Trend.
  2. Spikes allow stops to be placed with relative security.

Fig 20.1 A spike

Trading Trend

I define the Trading Trend as the ...

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