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How to deal with the spikes in the Forex market

3 min read

The Forex trading business is all about dealing with uncertainties. The professional traders are making money since they know the proper way to deal with such uncertainties. They never place any trade with emotions or with the certainty that they will make a profit. Those who are trading Forex for a long period must have experience heavy slippage or false spike. False spikes are one of the most common reasons for which the trades lose money from the best signals.

Is there any way by which we can deal with these false spikes? Can we make some serious cash from this market? To get the answer you have to read the rest of the articles. Go through the tricks and tips mentioned in this article because they can change your life.

Are you trading the lower time frame?

Those who are trading the lower time frame are prone to the false spike. If you analyze the lower time frame data, study the multiple time frame analysis methods. By doing so, you can filter out the false signals in the market. Some of you might get confused by seeing the different types of signals in a different time frame. You can easily solve this issue by giving priority to the higher time frame. Once you start dealing with the higher time frame signals, you won’t be seeing too many false spikes.

Though a higher time frame trading strategy can solve the problem of major spikes, it also reduces the frequency of your trades. But remember, you don’t need to place too many trades to earn more money. A few good trades are enough to make you rich.

Learn to analyze the price action signals

If you even use the mt4 copy trading, you might have noticed the pro traders are opening the trades based on the price action signals. So, why they rely so much on the price action trading method? With the help of the candlestick, you can determine the stop loss with a high level of accuracy. The pin bars are formed as a result of a massive spike. So, if you keep on trading with the help of the Japanese candlestick pattern, you won’t have to deal with too many false signals.

Learning about the candlestick pattern trading strategy is a very difficult task. But with the help of a demo account, you can easily master this skill. Instead of trying to learn the different kinds of candlestick patterns, you should try to know why the patterns work. If you know the reason behind the formation of the candlestick, memorizing the patterns will be easier.

Stop trading the news

False spikes are very common during the major news. The amateur always thinks news trading gives them the perfect opportunity to make a big profit from this market. But in reality, news trading is one of the most common reasons to blow up the account. If you stop trading the news, you will experience significant improvement in your win rate. Though you will not be able to ride some big market movement, safety should be your priority.

Some of you might have the urge to trade the major news. To solve the spikes issues in news trading, you have to use two different concepts. First of all, analyze the different time frame data and execute the trades with the help of price action signals. Once you learn to deal with this two unique techniques, spikes are not going to have a heavy impact on your performance.

Trade with the best

You must trade with the best broker like Rakuten so that you don’t have trade manipulated price feed. Chose your broker very carefully because your profit greatly depends on your trading environment. Even though the unregulated brokers have many things to offer, you must avoid them at any cost.

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