How to determine the cause of a price spike

[Pharaoh]

Why do you want to know the reason for any or all price spikes. You can trade on longer time frames to avoid such situations or you can check through any news site to avoid trading near high news impact.

Spikes are less common on higher time frames, but still can happen. Not all high impact news comes on a schedule.

 

[FringFX]

Why do you want to know the reason for any or all price spikes. You can trade on longer time frames to avoid such situations or you can check through any news site to avoid trading near high news impact.

perhaps interested in taking advantage of it. it makes sense particularly when talking about certain news events or price spikes.

 

[willforex]

Spikes are less common on higher time frames, but still can happen. Not all high impact news comes on a schedule.

Agree with your statement pharaoh. I am trading on higher time frames and not so worry about the spikes.

 

[itkraze]

No one can tell before news release that it will be going to effect the market huge or less. So if any news is near you should avoid trading if you are an inter day trader, or tighten up your stop loss if you are in a trade.

 

[FringFX]

No one can tell before news release that it will be going to effect the market huge or less. So if any news is near you should avoid trading if you are an inter day trader, or tighten up your stop loss if you are in a trade.

There are certain signs which you can use to determine if there is going to be a substantial price movement after the news is released.... Furthermore, tightening stop losses is of no use if a trader is trading with a nasty brokers

 

[itkraze]

If we use proper money management, then no spike can cause us big loss, this only happens when we try to make good money by using high lot and if any spike occurs we start investigating it.