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RE: TIB: Today I Bought (and Sold) - An Investors Journal #113 - Bitcoin, Italy, India, US Retail, Sony, Aus Investment Banking

in #investing7 years ago

Spikes just tell you where the buyers and sellers are lurking. Price spikes up and down = lots of sellers above the spike. Price spikes down and up - lots of buyers below the spike.

They do not really tell you about the health of the market. Market health best measured by 2 or 3 days (occasionally 4) of prices moving consistently in one direction (i.e., each bar makes a new high and new low going up = buyers are prepared to pay more = healthy )