Silver Intraday False Spike Commentary

I have about 5 different settings I can use for displaying the “type” of the chart. The spike you see above shows up in bar type very well, and when we switch to candlestick the same spike appears.  I think these spikes are high speed algorithm computer generated. In a blink of an eye this spike hits all the sell stops sitting below any price level. I call it the “stop sweeper” as it scoops up your stops, takes your money and takes you out of your bullish position.  

Also at the top we have a very tight range of price moves that I figure spanned a bit more than about  20 cents.  It looks like a miniature bar code.  

 

When I switch to candlestick at this scale, the spike is also very visible and it shows up in green while the other declines show up in red. Gee, sure looks like the algorithms are color blind. 

All this is fine and dandy, but once we switch to line type, in the chart setting, this spike disappears like it never happened. 


Here is the same chart, but switched to line type, and the spike crash is gone. With the price crash gone, our wave count remains bullish.  These big false spikes happen, and they can happen when the trading volume is very thin.