Spike
Stavro,
You have said that:
From the original price before the spike to the tip of the spike, I use estimation; I then quickly draw lines so I know the level, easier to look at 5 min chart on spike than enter on 15min.
The spike usually happen within the first minute bar. From the original price before the spike to the tip of the spike. and usually market retrace after that first minute spike or continues higher.
If it continues higher without retracement after the first minute spike, we should consider the tip of the spike even after few minutes spiking up without retracement. Then whenever it retraced that will be the tip of the spike.
Does that make sense?
I am using Fibinocci retracement on the original spike to see how much it would retrace to what level (0.32 or 0.61) and based on that I decide to enter. It's different with every release/trade, and you never know to what level it will retrace and if it will even reach any or these levels or deeper,
or if not at all.
Is that a good approach or method to trade the retracement.
You said you draw a line, what do you mean and how you measure 30% or 50%?
On average how many pips of stop loss we should consider, is it true the deeper the retracement the bigger the stop loss should be?
Thank you for your valuable info, very much appreciated.