The_STA

The spike high on EUR/TRY is a classic reversal pattern

FX:EURTRY   Euro / Turkish Lira
There are a couple of technical analysis patterns that can help identify reversals – some are more important than others, but this morning we note this beauty: - The spike high on daily EUR/TRY chart

The spike high on EUR/TRY, not only did it chart a spike high, but it reversed from a Fibonacci extension (1.618) AND we note the divergence of the daily RSI. All these factors imply that the market has topped.

Spike highs are identified by the following criteria:
• a High sharply above the days on either side,
• a Close near the day's Low, and
• a strong preceding rally.

The more extreme each of these conditions are, the greater the likelihood of a reversal.


NB RSI = Relative strength Index (click here if you would like to know more - www.investopedia.com/terms/r/rsi.asp).

Fibonacci extensions: Click here if you would like to know more: - www.investopedia.com...onacciextensions.asp

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