Trade triggers using spikes

Given that spikes are caused by traders highly emotional responses to news and/or fundamental data, the odds are good that spikes often mark important turning points both on an intra-day and on a longer term basis. This approach needs to be backed up by an operational procedure. Here is a way to trade them:

1 Isolate a volume spike on an intra-day chart. I like the 5-minute chart for this porpouse.
2 Note the price bar high and low for the period of the spike.
3 BUY on a bar close above the price high
4 Use the opposite side of the trade o the middle of the bar (depends on each trader) for a stop loss
5 Use only active markets only.

In the following example I have a recent trade on YPF, I opened a position on u$s34 after the price close over the long green candle.

I set a stop loss in the middle of that candle that also was support last Thursday and after been broken acted as resistance on monday.