Baruch's Forex System Journal
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Baruch,
I don't do much about them at all. If I am not yet in a position, sometimes I fade a spike because I already have an order in if the market gets to a certain spot.
If I am in a position, I will bail on a spike if my target is hit as I already have an exit order in. I also ALWAYS trade with stops, so I may be taken out if a spike goes against me.
I have no strategy per se for spikes. I don't worry about them.
Jay
I don't do much about them at all. If I am not yet in a position, sometimes I fade a spike because I already have an order in if the market gets to a certain spot.
If I am in a position, I will bail on a spike if my target is hit as I already have an exit order in. I also ALWAYS trade with stops, so I may be taken out if a spike goes against me.
I have no strategy per se for spikes. I don't worry about them.
Jay
Hi Jay,
Girlpower wrote in a thread, that when she had a position, and a spike went against her, she just got out. But when the spike was with her position, she read the news. If there was a good reason for the spike, she would stay. If there was no reason for the spike, she would go out.
Any comments?
Some traders use 34 MA. I don't know why. But I tried 34 MA on some 30 min chart to see if it works better than my 50 MA. I would like to get more signals. It's a little bit boring sitting a whole day waiting for a new signal. Like all other traders I love some action.
But I think 34 MA gives too many signals, which are not very good. It's too close to the price. So I stay with my 50 MA.
But maybe 34 MA works better on a smaller timeframe?
But I think 34 MA gives too many signals, which are not very good. It's too close to the price. So I stay with my 50 MA.
But maybe 34 MA works better on a smaller timeframe?
Quote from OddTrader:
2 cents:
imo, following news and following price movement are in many sense basically the same thing, except timing and time lag that can be noise sources to many small sized traders, to attain similar results in the long-run as long as the system is effective enough.
Hi OddTrader,
OK, but there are spikes made by stop-hunters. They are good to fade. Spikes made by news are just a different story. Do you agree?
Quote from OddTrader:
In principle, yes. But trading spikes of different types would be a big issue and complex to expect a simple treatment.
Hi again,
OK. It's easy to make simple issues complicated - but very difficult to make complicated issues simple. I prefer the KISS-method: Keep it simple, stupid.
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