As a visitor to our Sites, you can engage in many activities without providing any personal information. The vast majority of traders lose a lot of money trading spikes in Forex. Traders are given the knowledge to create their own strategies and be on top of the game. Double-bottoms and double-tops can be appealing setups for traders as the market has shown a willingness to react to a specific price. The high degree of leverage can work against you as well as for you. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT.

One of the greatest parts about trading monwy action is that traders can see sentiment playing out on the chart with one of the most pure indicators available: Price. Double-bottoms and double-tops can be appealing setups for traders as the market has shown a willingness to tradint to a specific price. The picture below will show an example of a trading spikes forex money bottom. Notice that after an elongated down-trend the currency pair bounces from the same price on two separate occasions.

This clues the trader in to the fact that something is going on at this price. The reasons for the bounce could be endless. Perhaps there is a large corporation looking to exchange currency setting a line in the sand with which they want to buy. Or perhaps this price is a strong level of support much like Parity on USDCAD or AUDUSD.

Whatever the reason may be, we can use the information that forx do know to strategize a manner of entry into the trade; but first we have to decide which direction we want to make a play. The Double Spike Breakout looks to play a continuation move in the currency pair, expecting the support or resistance that has reversed price in the past to become broken on dorex attempt. The picture below will illustrate in more detail:.

Given that price has trading spikes forex money twice in the past, it is perfectly reasonable to expect that price may trading spikes forex money support enough to enter our position, and then reverse against us. So prudent rules of money management apikes trading breakouts apply; and risk-reward ratios may be more favorable at or greater looking for 2 dollars of profit or more for every 1 dollar risked. The Double-Spike Fade is the opposite of the earlier strategy in the fact that it looks for a reversal after seeing the mojey bounce off of support or resistance.

The chart below will show a bearish market buckling off of support offering a dual-spike with which the trader can look to fade:. Once resistance is broken, the trader can look to open the position. The picture below will illustrate further:. To contact James Stanley, please email Instructor DailyFX. You can follow James on Twitter JStanleyFX. DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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HOW to read the chart candles! Predicting the direction of the currency pair!

For a limited time, get my book and my Retirement Catch-Up Plan DVD for free*!. 0 Forex Spike Reversal Strategy. Steep, fast rallies in currency prices, better known as spikes are often caused by major economic news releases such as the non farm. Easy to understand blueprint helps Average-Joe investors trade options!.