Dramatic Price Change of SPY

[tomorton]

Same answer to the ANY new trader trading any other time frame

Technically true, again. But in the actual practice, most guys who start on M5 will be broke in 1 month. Most guys who start on D1 will not - and this is one factor amongst several that gives them an edge - they have at least the opportunity to survive long enough to learn the game.

 

[murray t turtle]

I see many dramatic price changes on SPY, happens every day, no corresponding changes on ES. So, are they real changes or just data errors? What caused this?

View attachment 196574

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Not likely good data;
that's[$10/5minutes] really a daily range for SPY. LOL But good question; i saw some stuff like that on QQQ in bear of 2002. 7% in one day, not 5 minute charts.; when QQQ was in $27 Price range.

 

[Visaria]

most guys who start on M5 will be broke in 1 month.

Most guys who start Formula 1 after passing their driving test will probably be dead within a day. But there will the one or two who might just make it...same thing in trading 1 minute and 5 min...they will not know unless they try.

 

[tomorton]

Most guys who start Formula 1 after passing their driving test will probably be dead within a day. But there will the one or two who might just make it...same thing in trading 1 minute and 5 min...they will not know unless they try.

But would that seriously be your recommendation to a new trader? Surely you do not base your own trading on 100 to 1 long shots like this?

 

[maxinger]

hmmm.
from discussion on price spike to time frame chart.

I recommend as fine as 500 volume chart which is equivalent to few seconds per candlestick.
anyway do what suits you.

 

[Visaria]

But would that seriously be your recommendation to a new trader?

Sure, tell him or her it's not likely to work, but if they want to try, they should do so.

I don't see how else anyone can live up to their potential without trying (and yes, probably failing...but that's life).