Trading Strategies

The Spike and the Second Leg

An impulsive move is a queue being cleared, and the gap it leaves is the receipt. This paper defines the spike so it can be counted, explains why the retracement usually arrives in two legs rather than one, sets the entry and the invalidation where the structure puts them, and then does the arithmetic a fixed one-to-one target actually demands — which is the step that decides whether the setup survives its own costs.

Difficulty

Intermediate

Reading time

38 min

Pages

22