I traded NFP last week and watched as price spike and bounced around like a ping pong ball in a tornando.
Just before the news is release, traders place straddle orders (stop orders). Once the price level is hit, these orders turn into market orders. I understand that there are no stop limit orders permitted? Is that correct?
If so (market orders), this would cause a huge dump of market orders in the market, causing price to spike and bounce around unitl they are filled, and stops taken out.
Would this be a correct assessment?
Just before the news is release, traders place straddle orders (stop orders). Once the price level is hit, these orders turn into market orders. I understand that there are no stop limit orders permitted? Is that correct?
If so (market orders), this would cause a huge dump of market orders in the market, causing price to spike and bounce around unitl they are filled, and stops taken out.
Would this be a correct assessment?
Tipster Trendlines - Trade from the chart