Trade News Spikes Like A Boss
Get a free test version of our best News Spike trading EA at the end of this article.
Whats a news spike?
After years of trading high impacting News Releases in the forex and futures markets, by using expensive high end news feeds and specialty software to trade Market “spikes” (fast move up or down), I began to see a particular pattern emerge within these spikes. Not only for news releases but for MANY other reasons as well. Some of these reasons can be: Break of Support or Resistance areas, broken Trend Line, Price breaking through Big Round Numbers, Break of Popular Moving Averages, natural disasters, breaking news, etc.
Every time this happens traders and automated trading robots enter the market (in milliseconds) for quick profits. This causes the markets to spike. Sometimes you might see these moves and join in. Then what happens to this move, the breakout? It turns right around and heads back to your stop loss or point of origin.