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A spike and channel is one of the most common ways a strong trend unfolds: a fast, near-vertical breakout (the spike) followed by a slower, sloping move (the channel). Recognizing it early tells you the trend is strong and that pullbacks are buying or selling opportunities, not reversals. Al Brooks price action is a trading methodology; the logic below is implemented in our own original code.
What is a spike and channel?
The spike is a burst of large trend bars with little overlap that covers a lot of distance quickly. After the spike loses momentum, price keeps going in the same direction but more slowly, drifting inside a channel with shallow pullbacks. Together they form one of the clearest signatures of a strong, "always-in" trend.
Why does the spike matter for targets?
The spike is also a measuring tool. Measure its height and project that distance from a pullback to estimate where the channel may run — this is a spike-based measured move. Because spikes are fast and one-sided, the projection is often reached before the trend stalls. MyTrading projects these targets on the chart automatically.
What happens in the channel phase?
The channel is slower and more two-sided than the spike, so it is also more fragile. In Al Brooks' framework the start of a channel often becomes the support or resistance of the next trading range, and a break of the channel line frequently signals that the easy part of the trend is over. Expect pullbacks to deepen as the channel matures.
How do you trade with a spike and channel?
Trade in the direction of the spike. The first pullback in the channel — often a small dip toward the moving average — tends to be the highest-probability with-trend entry. Counter-trend trades inside a strong channel are low-probability until there is a clear break of the channel line and a test back.
How does MyTrading help you read it?
The Al Brooks indicator classifies the market phase, marks the moving average and pullback structure, and projects spike-based measured moves — so you can see at a glance whether you are in a spike, a channel, or a developing range. It works alongside your drawings, plan and review.
Start using it
Open the Al Brooks price action indicator on a live chart, project targets with the measured move calculator, or see the full Al Brooks trading journal.
This article explains Al Brooks' price-action concepts in our own words and does not reproduce any book text or images. Last updated: 2026-06.