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Can someone maybe explain why a candle can drop 40+ pips, even when there is no new release? What can be the case that when there is a strong bullish movement, that suddenly the market reverse with 40 pips? Of course, I understand that we have to deal with banks etc., but I truly want to figure out how things work. I can't figure out why and what's going on. I hope you can give some insight knowledge that will help me to become a better trader in the future :-)

Thanks,
Charlie
 
Charlie Alberti:
Can someone maybe explain why a candle can drop 40+ pips, even when there is no new release? What can be the case that when there is a strong bullish movement, that suddenly the market reverse with 40 pips? Of course, I understand that we have to deal with banks etc., but I truly want to figure out how things work. I can't figure out why and what's going on. I hope you can give some insight knowledge that will help me to become a better trader in the future :-)

Thanks,
Charlie

The regular news release is not the only thing which moves the market. So far the biggest price drops were due to mistakes, like the flash crash in 2010. You are in the age, where robots can trigger insane selloff, for nothing more than detecting a key word in Twitter.
 
Ex Ovo Omnia:

The regular news release is not the only thing which moves the market. So far the biggest price drops were due to mistakes, like the flash crash in 2010. You are in the age, where robots can trigger insane selloff, for nothing more than detecting a key word in Twitter.

If that's true then it's so difficult to trade these days!
 
Charlie Alberti:
Can someone maybe explain why a candle can drop 40+ pips, even when there is no new release? What can be the case that when there is a strong bullish movement, that suddenly the market reverse with 40 pips? Of course, I understand that we have to deal with banks etc., but I truly want to figure out how things work. I can't figure out why and what's going on. I hope you can give some insight knowledge that will help me to become a better trader in the future :-)

Thanks,
Charlie


Hey Charlie,

I don't know which pair you are talking about but for you to get a better knowledge I think it is better to stick with www.forexfactory.com or similar forex forums because MQL5.com is more code base talks and indicator related however babypips.com can give you better understanding or forexfactory give you better insight of certain things.

In addition to that you cannot follow all news as a retail trader. If you are analysing technically and going for short terms you should just focus on the important news releases (which every economic calendar lists). Apart from that you onlyl trade when your technical analysis allows. Meaning if you think the chart shows a bull strength then take long trades on certain conditions if it is bear strength market then follow the trend. I know you got it all . You just need some time to digest. The idea is not to give up when you fail but try to figure out why.

Just stop trading prior to a news release . There is Bundesbank President speaking tonight so becareful to that time.

 
Kxeroo:


Hey Charlie,

I don't know which pair you are talking about but for you to get a better knowledge I think it is better to stick with www.forexfactory.com or similar forex forums because MQL5.com is more code base talks and indicator related however babypips.com can give you better understanding or forexfactory give you better insight of certain things.

In addition to that you cannot follow all news as a retail trader. If you are analysing technically and going for short terms you should just focus on the important news releases (which every economic calendar lists). Apart from that you onlyl trade when your technical analysis allows. Meaning if you think the chart shows a bull strength then take long trades on certain conditions if it is bear strength market then follow the trend. I know you got it all . You just need some time to digest. The idea is not to give up when you fail but try to figure out why.

Just stop trading prior to a news release . There is Bundesbank President speaking tonight so becareful to that time. 


Thank you for clear things out. I understand that there are other platforms to discuss about news realeases etc. , but I truly like this platform better then other, but I will look around to forexfactory yes.. lol 

I was talking about the GBPJPY H1 and I found out that the reversal had something to do with a reaction on the Brexit

 
Charlie Alberti:


Thank you for clear things out. I understand that there are other platforms to discuss about news realeases etc. , but I truly like this platform better then other, but I will look around to forexfactory yes.. lol 

I was talking about the GBPJPY H1 and I found out that the reversal had something to do with a reaction on the Brexit

Dear Charlie,


News are just tools for smart money to move. The move may not be matched by the news. You can see a positive statistical data but the move could be negative. So basically a day trader should not concern about what has been said or what the figure is. Charts shows who is in power and how strong they are. You make decision based on that. If you are going to follow news closely I suggest you to buy reuters news feed and analysis (which all big players use) , comes with a lot of cool stuff but it is also comes with a price tag of 1500 Euro a month.

So my point is. Have a game plan, and follow it. With good money management we don't need to understand fully what's happenning in the market. That's why it is actually facinating. Doesn't matter what the economy is as long as you are trading the right side. ;)

 
Kxeroo:

Dear Charlie,


News are just tools for smart money to move. The move may not be matched by the news. You can see a positive statistical data but the move could be negative. So basically a day trader should not concern about what has been said or what the figure is. Charts shows who is in power and how strong they are. You make decision based on that. If you are going to follow news closely I suggest you to buy reuters news feed and analysis (which all big players use) , comes with a lot of cool stuff but it is also comes with a price tag of 1500 Euro a month.

So my point is. Have a game plan, and follow it. With good money management we don't need to understand fully what's happenning in the market. That's why it is actually facinating. Doesn't matter what the economy is as long as you are trading the right side. ;)


Thank you so much Kxeroo for explaining more then my mind can handle right now.. lol


I'm trading for 3-4 months and do not want to trade on the news, but if it is possible to get a deeper insight, then I can create a better trading plan for myself. 1550 Euro a month is indeed a big price tag so I walk away from that one.. ;-)

right now I'm busy learning price action, price movement and price momentum...enough to learn and to do for the next couple months/years. have a blessed day!

 

Hi Charlie,

i think you are talking about GBPUSD :-)

 
There are several reasons for long candles and it depends on your strategy to know when it will be appear  
 
Mohammed Mounir:

Hi Charlie,

i think you are talking about GBPUSD :-)


No it was the GBPJPY Mohammed, but thanks for sharing your thoughts


 
Charlie Alberti:


No it was the GBPJPY Mohammed, but thanks for sharing your thoughts



I see!!

Its better to wait for Price action signal to enter good price position

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