How often have you been hit by 'spike'? | Forex Factory

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How often have you been hit by 'spike'?

  • #1
  • First Post: Jun 7, 2013 3:15am Jun 7, 2013 3:15am
Everyday when I learn something, I'm reminded that I'm still a newbie.

I read many stories where the spike makes profitable trades hit Stop Loss all of a sudden and close at loss. Any possible examples here?

How many pips would a spike go? I also heard that the spike doesn't show up in the chart once it is corrected. Is that true? Does that mean backtesting is useless?
  • #2
  • Jun 7, 2013 4:50am Jun 7, 2013 4:50am
Quoting Bhoopalan
Everyday when I learn something, I'm reminded that I'm still a newbie. I read many stories where the spike makes profitable trades hit Stop Loss all of a sudden and close at loss. Any possible examples here? How many pips would a spike go? I also heard that the spike doesn't show up in the chart once it is corrected. Is that true? Does that mean backtesting is useless?
Spikes are usually news driven, so keeping an eye on the news calendar is a good idea. If you're being stopped out by spikes a lot you may need to increase your stoploss which may mean you need to rethink your strategy. In answer to your questions:
1. I don't have any. 2. How long is a piece of string? 3. No. 4. No.
  • #3
  • Jun 7, 2013 4:53am Jun 7, 2013 4:53am
Quoting TheMaxx
{quote} Spikes are usually news driven, so keeping an eye on the news calendar is a good idea. If you're being stopped out by spikes a lot you may need to increase your stoploss which may mean you need to rethink your strategy. In answer to your questions: 1. I don't have any. 2. How long is a piece of string? 3. No. 4. No.
Thank you for your kind reply

I really want to know if false spike is frequent in any brokerage?
  • #4
  • Jun 7, 2013 5:50am Jun 7, 2013 5:50am
If you ever see a "false spike". That is a spike that is not recorded on your charts afterwards. You should bolt from the door of whatever broker you're using asap.
  • #5
  • Jun 7, 2013 5:55am Jun 7, 2013 5:55am
Try to trade bigger time frame instead of smaller time frame, because that spike become unseen in bigger time frame, and you are trading with bigger SL and TP. However, you may reduce the lot size or trade mirco lot as you wish. The objective is still remain, is just like you trade the smaller time frame.
  • #6
  • Jun 7, 2013 6:29am Jun 7, 2013 6:29am
Quoting ~bull.bear~
Try to trade bigger time frame instead of smaller time frame, because that spike become unseen in bigger time frame, and you are trading with bigger SL and TP. However, you may reduce the lot size or trade mirco lot as you wish. The objective is still remain, is just like you trade the smaller time frame.
am not scalping and trading at higher time frame only. But just want to be aware if false spikes often appears with any brokers so that I might avoid them. I'm considering Alpari UK. All brokers have clients who call them scam. Alpari also has such clients who complaint like false spikes and all.

I just want to know how many of you could've experienced it.
  • #7
  • Jun 7, 2013 6:36am Jun 7, 2013 6:36am
Quoting Bhoopalan
{quote} am not scalping and trading at higher time frame only. But just want to be aware if false spikes often appears with any brokers so that I might avoid them. I'm considering Alpari UK. All brokers have clients who call them scam. Alpari also has such clients who complaint like false spikes and all. I just want to know how many of you could've experienced it.
I am not sure if you talking about the spike happened on Monday or any specific time? If news is announced, then it would have spike for few of time frame. If you are talking about there is a spike for normal trading day (No news), then something is wrong. So far, i have tried Instaforex and GFT broker without any issue.
  • #8
  • Jun 7, 2013 6:40am Jun 7, 2013 6:40am
What is the spike happened on Monday? False spike? Or can it still be seen in chart? If yes, which pair and can you say which time frame? I hear that brokers purposefully show false spike that would hit sl and all and we have to hide sl or manually close order to avoid sl being hit. Like anybody, I just want to be away from these brokers.

Any body has experience with Alpari uk?
  • #9
  • Jun 8, 2013 3:15pm Jun 8, 2013 3:15pm
Quoting Iro
If you ever see a "false spike". That is a spike that is not recorded on your charts afterwards. You should bolt from the door of whatever broker you're using asap.

No, that false spike is really good info, you can go all in, because now you know direction.
They use these false spikes, because they have too many traders trading in right direction, and they take them out and say: Oh no, we had a technical issues.
People are working with that now.LOL
  • #10
  • Jun 8, 2013 9:07pm Jun 8, 2013 9:07pm
Quoting Bhoopalan
What is the spike happened on Monday? False spike? Or can it still be seen in chart? If yes, which pair and can you say which time frame? I hear that brokers purposefully show false spike that would hit sl and all and we have to hide sl or manually close order to avoid sl being hit. Like anybody, I just want to be away from these brokers. Any body has experience with Alpari uk?
Yes, false spike especially there is news announced on weekend and causing Monday opening price to jump or it could be affected by other pairs as well. I do not have which broker has the most spike issue, as this is the not big issue for me, so I do not concern about. Thanks.
  • #11
  • Last Post: Jun 9, 2013 12:30am Jun 9, 2013 12:30am
I am now with broker, who is honest, they do not have false spikes or other manipulation, they make money, when traders make money.
Biggest false spike was few years ago with MigBank, it was 500 pips long spike, and it was only visible on M15 chart.
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