Spikes in the forex market are quite tempting to trade, but to be able to do so you’ll need to know what makes up a forex currency price spike. Spikes are essentially steep, fast rallies witnessed in currency price and are a direct result of very important fundamental event risk Estimated Reading Time: 3 mins Definition of:Spikein Forex Trading. An abnormally large change in price Forex Spike Trading: What the Price Spikes Mean and How to
Spike Forex Trading, Reason & Success | PreferForex
Sometimes the price forex spike trading up or down very strongly and suddenly and then turns around, and so it forms a spike on the price chart. These strong movements form because of the sudden huge transactions that are triggered at the same time based on an economic event like an important news. For example, a sudden and unexpected change in the interest rate of a currency, forex spike trading.
Such movements and spikes and can be the subject of a kind of trading style which is called Forex Spike Trading. They change gradually. And also it is not easy to make an unlimited number of transactions, buying or selling, on the stock market suddenly, because stock market is limited and sometimes there is no buyer for a seller at any time and visa versa.
Therefore, stock market rarely forms price spikes. Forex spike traders wait for the price spikes to form on the charts to enter the market, because they believe 1 spike trading is more profitable, and 2 there is a stronger guarantee of making profit. I tell you how you can do that, but the first and most important Forex Spike Trading rule you have to keep in mind religiously is that the strong price spikes form on the charts when the market becomes extremely volatile, forex spike trading, and for examples it moves hundreds or even thousands of pips in one day I will show you the examples, forex spike trading.
A sudden and too strong movement can blow up your account within a few minutes, specially because these price strong movements are some great chances for the market maker brokers to make the forex spike trading accounts wiped out. So you have to be very careful about the strong price movements and the spike trading. You should also lower your account leverage as much as possible.
However, if you wait for the market to calm down and form the spike on a longer time frame like daily or weekly or even monthly, you can easily enter at your desired price, forex spike trading.
This is also a very important tip in trading the price spikes on the Forex market. These are the most important Forex spike trading rules that you have to keep in mind if you want to trade the price spike, forex spike trading, otherwise you can lose your shirt on the too volatile Forex market. Now, I show you some examples of the price spikes on the Forex market and will tell you how you can trade them properly.
So, it is not that hard to find the spikes on the chart. You have to wait for these kinds of visible, outstanding and strong spikes forex spike trading form on the longer time frames to enter the Forex market. However, they are so profitable and your patience will get paid if you wait for them, because you can make thousands of pips through one single trade setup if you use the longer time frames to enter and you are patient enough, forex spike trading.
The too strong and long shadow of the candlestick that forms the spike and also the too strong Bollinger Bands breakouts, are the other features of the price spikes. One of the most important point is that you should NOT get stressed and enter the market when the price has turned around and is forming the candlestick shadow. When you see the price has turned around, you can get stressed out and think that you are losing a lot of profit that can be in your pocket, and so you enter the market too early.
This is a big mistake because the price still can turn around again and follows the same direction. You HAVE TO wait for the candlestick to close to enter the market, forex spike trading, otherwise you will be in trouble. This is another important spike trading rule on the Forex market. It is not only that. If the next candlestick closes with a the opposite body color, it means the too strong movement is really reversed and it is time to enter the market and make money.
Surely you will have to leave hundreds of pips on the table if you wait for the candlesticks to close, but that is the profit you have to ignore if you want to have a safe and profitable trade.
So, you wait for the spike candlestick and then the next candlestick to close. In case 1 the spike candlestick forms a too long shadow which is a lot longer and bigger than all the other candlesticks and their shadows on the chart, and, 2 the shadow or even the candlestick body have strongly broken out of the related Bollinger Band lower band in case of the long trade setup and upper band in case of the short trade setupand 3 the confirmation candlestick also confirms the candlestick spike, then you can enter the market.
This is the easiest and safest Forex Spike Trading method. Here is another example below. The one at the left is the example of the spike which is not that strong.
The third one at the right is still doing good. The important lesson that the below chart teaches is about the time frame. Weekly and monthly time frames are the best time frames to forex spike trading out the week price spikes on the Forex market. You will get in because of the weaker spikes on the shorter time frames line daily. You can take a few positions and close them forex spike trading turn to collect some profit forex spike trading then move the stop loss further for the open positions.
This is a good strategy to save your profit. To have a better exit, you can use the tools like Fibonacci extensions. Forex spike trading below chart is the forex spike trading the above one, but I have applied the Fibonacci levels on it. It shows the importance of the
How to Trade High Volume Spikes! ��
, time: 5:41Definition of "Spike" in Forex Trading
Definition of:Spikein Forex Trading. An abnormally large change in price Forex Spike Trading: What the Price Spikes Mean and How to Spikes in the forex market are quite tempting to trade, but to be able to do so you’ll need to know what makes up a forex currency price spike. Spikes are essentially steep, fast rallies witnessed in currency price and are a direct result of very important fundamental event risk Estimated Reading Time: 3 mins
No comments:
Post a Comment