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How to determine the cause of a price spike

Discussion in 'Beginners Bootcamp' started by icwalter, Jul 11, 2012.

  1. Pharaoh

    Pharaoh Colonel

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

    FringFX Sergeant

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

    willforex Corporal

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

    itkraze Private, 1st Class

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    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.
     
  5. FringFX

    FringFX Sergeant

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    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 :p
     
  6. itkraze

    itkraze Private, 1st Class

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    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.
     

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