Im returning to try to invest some of my time and (potentially money) to forex. Im in a 1:30 account demo and was focusing on certain pairs.
I opened a “sell” position on USDCHF and put my stop loss orders too, but I noticed this:
That spike seems to be made for the solely purpose of force stop loss orders on those who went technical.
My question is, does this happens frecuently with that pair? Is there a cause of it? How to prevent this from happening? bcz after the spike, the trend went down as expected.
A broker probably doesn’t have enough money to spike even one pair’s price to hunt their own clients’ stops. I see the spikes on my chart too for this pair and other markets too so they are unlikely to be artefacts on your brokers charts.
This is more likely market volatility and risk adjustments immediately caused by the news events at around that time.
If you’re trading off such a tight time-frame, your strategy needs to take account of economic calendar events.
Have you thought about trading without stops ? … If a small trend in the opposite direction could potentially damage your account then your positions are too big.
