I mean : what is that?? is there anything Fundamental or technical that can explain such a movement in 15min…
I sincerly hope on some toughts, cause atm my explanation is a rant and not good for my trader-morale :
‘We are fleas riding on the back of institutions, and such moves are them squashing us’
wth am i supposed to write in my trade-journal… the whole setup was ok, good entry, good sl , good tp.
heck, bad luck of that spike, cant happen all the time… cheer up …
Post-QE3 announcement volatility as the market sorted itself out and a pile of money flowed into the market. That dip down past 1.29 was like free money given the content of the Fed statement.
You just have to keep an eye on news releases. Get an economic calendar app or just check out financial news websites for any up and comming events likely to effect either currency. Chart patterns tend to fall apart when theres big news. You will notice there was a similar spike yesterday around 8am GMT when Germany’s high court decided to back European Stability Mechanism.
As for how the spike actually occurs, im not sure. Maybe someone can explain why positive news first resulted in a downward spike before a rapid correction?
Its an instituational tactic, Sell you the sell, then slap you when you actually buy into the shananigans,
Like a pump fake in football,
When the stock market rises, so will the E/U, mostly anyways… A good key is, if DOW up over 50 points, EU should follow…
Today it was best for the newbies to hold tight, like I said in another thread…
There is alot to it… You’ll get it, just keep your nose to the grind stone.
Scroll up from this page, where it says " TOOLS" in the big tab, hit that, and look at calancder, it lays it out for you, the more dots, the more danger, Hence, higher chance of liquidity…
did you buy that silver like I said to? Or did you laugh for the last 2 days about the comment?
Thats interesting that its an institutional thing. So big players quickly sell to drop the price and then rebuy in order to trigger sell orders ect? Is this hedge funds, banks ect plan this sort of move together? Wish i had a buy order waiting at the bottom of it.
Think of it like this,
How much do you think retailers are moving the candles? i would bet, almost nothing, so litle, you could barly see a dent in action…
Thats my take on it…
Always watch for the windup…
like the 2 bumps, or peaks, or pushes,
Feel free to throw in the .02 cents, because Im not `100% sure of my assumptions, these are just things I see…
I don’t know what exactly caused that particular price movement…but I do know that I hate days where the best trading hours (London Open to Noon EST) do nothing as everyone waits for one stupid news announcement.
I’m with you FXassasin. I trade LO exclusively and lately hasn’t been much lol.
Aight, QE3 …?.., i’m ready for a second slap in the face as i admit: I use the babypips\calendar to spot news, and to to close positions in front of big news releases; and in a glance of that thursday calendar, i did not notice any big news around 16:30 considering $$$. there was PPI, inititial claims, and capicity utilisation at 14:30… and i have no clue what those 3means, which i will learn if i stick around long enough i’m sure… butt… apart of that… i mean, I do hope : in the year of trying to make a living of this consistently: there are enough weeks without ‘news’ and ‘politicians’ and ‘whatever’ to make a sober but solid living of this huge beast called Forex.?.
Same here…News like these that everyone has been talking about for months is worth waiting for. Like Banker928 said it can be predictable what the outcome will be. But it all depends how active you are following the news. My broker has been updating me for what was going on and how the market will react if the Fed did or did not issue the QE3. I also subscribes for other commentary for free. It takes a lot of reading but its all worth it.
If you are only trading using technical charts, candlestick, etc, it is still good to know what is going on around us specially when central banks (such as ECB and Fed), are issuing there monetary policy, interest rate, etc. even the election can make the market move and could cause a volatility (heck even an earthquake in some country can make the currency move). Knowing these you can make a decision whether you want to get in, get out, or just sit tight and watch :). I am still new to these but I must admit that I like to take advantage a big news like these when it comes.
Yep… and the E/U dip right after QE3 was announced was your broker basically saying:
And i am still cursing myself on my tight stop loss . On a day when every Tom in town probably made money I lost out. I was not even there to get back since I was earning my daily wages at some corporate office. Nothing wrong with my setup except my tight stop loss .
I am so frustrated. Was a bitter lesson learnt.
Will look for the retracements now.
not sure there will be one.
I was short that day 
made money the then lost it :-D. But I was trying out counter trend stuff
Is it not said what goes up must come down ? 
Not exactly the right day to wear that contrarian cap. However when the world was baying for blood (read qe3) I got super cautious having got burnt one too many times in the past.
Just make sure you take notes, and remember this type of action… Its a learning process, more fish in the waters.
Looking at the EUR/USD for the pass 3 years for the month of September base on the Monthly candlestick chart.
September from high and low…
2009 - UP 600 + pips total
2010 - UP 1,000 + pips total
2011 - Down 1,000 - pips total
2012 - UP 600 + pips total (Mid September)
Since we are only half way of the month of September and we are already in a move of 600 plus pips, I am leaning towards of going up some more (since it is possible that the market can move up to 1000 pips in a month.). It might retrace a little bit down then rally again. It is possible that the bulls are now driving the market and maybe the bears are leaving behind us for now…BUT we don’t know for sure…
Always in a look out for the next opportunity and wait and see what the market will do next…
The waters are WAyyyyyyy ruffer then the past… The USD is in a tailspin, The only way you should consider buying USD is if a war breaks out…
*shakes head