Why sudden hike forex

Why sudden hike forex

Oct 12,  · From the above, it is easy to conclude that the forex market is a very volatile market, where prices can change unexpectedly. Forex volatility refers to fluctuations in currency on the global foreign-exchange market. Based on a large range of variables, price changes will vary from hour to hour, second to blogger.comted Reading Time: 8 mins Why Forex Is Bad. The currency market is the largest and most liquid of all financial markets. However, the percentage of successful traders is very low. Lack of proper trading strategy and indiscipline are generally the reasons for trading losses. However, there are some inherent factors unique to Forex market that makes it a dangerous Mar 15,  · Here are 5 dollar downers, followed by open questions about why the Fed decided to act now and not later. No change to rate projections: The famous dot-plot remained unchanged in the median: 3 hikes in to % and an interest rate of % in Bringing the hike forward does not bring new hikes forward

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Sometimes the price goes up or down very strongly and suddenly and then turns around, why sudden hike forex, and so it forms a spike on the price chart, why sudden hike forex. These strong movements form because of the sudden huge transactions that are triggered at why sudden hike forex 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. 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, why sudden hike forex, because stock market is limited and sometimes there is no buyer for a seller at any time why sudden hike forex visa versa, why sudden hike forex.

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, and for examples it moves hundreds or even thousands of pips in one day I will show you the examples.

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 clients accounts wiped out, why sudden hike forex. 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 why sudden hike forex even monthly, you can easily enter at your desired price. 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, 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 to 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. 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. Why sudden hike forex 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, 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, why sudden hike forex. 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 setup why sudden hike forex, and 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 why sudden hike forex 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 filter out the week price spikes on the Forex market.

You will get in because of why sudden hike forex weaker spikes on the shorter time frames line daily. You can take a few positions and close them in turn to collect some profit and why sudden hike forex 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, why sudden hike forex. The below chart is the exactly the above one, but I have applied the Fibonacci levels on it. It shows the importance of the

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Feb 01,  · Sometimes the price goes up or down very strongly and suddenly and then turns around, and so it forms a spike on the price chart. This phenomenon can 99% be seen on the Forex market because it is a too volatile market, and the price starts moving strongly very fast and then it changes it direction. These strong movements form because of the sudden huge transactions that are triggered Dec 01,  · On a 30 min candlestick chart, the result was a tweezer, without any upper shadows, quite rare in forex. What I did not understand was why the peak occured exactly on the half hour. Looking back, I see this happens several times a week with currency pairs involving CAD, such as CAD/JPY, EUR/CAD and USD/CAD, and at all times of the day or night Forex Spike Trading: What the Price Spikes Mean and How to