Oversold

bobsbeer

Corporal
Messages
98
I'm assuming such situations are apparent when sudden spikes up or down occur on the charts. Yes they are probably the result of news good or bad and a herd mentality, but they also seem to be the result of longer term buying/selling. I have a lot to learn before I should be let loose on the market I think..........
 

mlawson71

Corporal
Messages
188
I'm assuming such situations are apparent when sudden spikes up or down occur on the charts. Yes they are probably the result of news good or bad and a herd mentality, but they also seem to be the result of longer term buying/selling. I have a lot to learn before I should be let loose on the market I think..........
What do spikes haves to do with overselling? Or do you mean bullish spikes?
 

ForexVerified

Private, 1st Class
Messages
582
I'm assuming such situations are apparent when sudden spikes up or down occur on the charts. Yes they are probably the result of news good or bad and a herd mentality, but they also seem to be the result of longer term buying/selling. I have a lot to learn before I should be let loose on the market I think..........
Some times spikes can occur from real transactions, like some major corporation buying/selling something, or a central bank buying/selling reserves, but such spikes are usually "fake", i.e. don't dictate the currency trend.
 

EuroTrader

Sergeant Major
Messages
1,039
Some times spikes can occur from real transactions, like some major corporation buying/selling something, or a central bank buying/selling reserves, but such spikes are usually "fake", i.e. don't dictate the currency trend.

Whenever we are looking at the Forex spikes we have to consider which are the ones which will give us the direction of the true trends :)
 

EURUSD

Sergeant Major
Messages
1,133
Whenever we are looking at the Forex spikes we have to consider which are the ones which will give us the direction of the true trends :)
Spike movement in my experience very profitable, especially on strong movement of the trend on one direction, making profit seems easier, but trend will over eventually if already on overbought oversold time hence cut profit might better
 
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