What causes spikes

[LizzieThri]

Look at MAT today. The spike at 11:16 what is the reason. I have been putting in future orders hoping to benefit from some of these.

[LolitaCaf]

The upward pull of gravity..... :beerglass:

Buying pressure causes spikes. Either demand increased quickly or supply dried up for a few minutes causing would be buyers to have to buy it higher.

Could have been a quick HF algo trade, short cover, a fund adding/starting a position, or just plain old retail buyer hitting market order a few times to get in.

[lolitaut2]

Good answer, thanks. Now, does this usually trigger a sale or a buy if you have it it or does the market (broker) not have time to react when you have it in to take advantage of any spikes?

[LouanneWhi]

If you already have your order in, meaning its in the order book (level II), yes your sell order should fill into a spike like that. But good luck guessing as to when you'll get random spikes!

[madgexv16]

With guessing as to random spikes, always have a limit order in.