Price Action Strategy question.
A spike is only a spike if the price does not continue in that direction, how do you know if it will or not ?
Honestly, I don't believe that it matters if the price continues or retraces. The strategy would most likely require a trailing stop of some sort to catch the accelerated price movement.
If it matters to you, I suppose the answer I will reply with is that I do not know. Apologies & thank you for your post.
@Ickyrus: BUT :), what if pending orders were used AND "Spread Control" functions were in place? Wouldn't this solve the problem of not being able to get in the market because of freeze level?
Thank you.
Ok I will be the Muggle for now - How do you know when/where to place the pending order? Very fast ups and downs will close most close trailing stops very quickly
You mean when a bank or big player stop hunts just before price heads in the opposite direction. The financial insitution knows it needs a pool of money to balance the large change of price, who can blame them thats what they have to do to make things balance.
You are probably better off just sticking to a trend retracement system. Making sure that your risk/reward ratio is at least 1:1 and keeps to a range of money available to trade that risk
Perhaps I'll swim deeper towards my objective and write that I am aware that there can be a lack of data being provided by some MT4 terminals. This lack of data that I am speaking of is sometimes referred to as "Level 2 data". Level 1 data is openly available in the MT4 terminal, BUT ;) Level 2 data is sometimes excluded which can severely decreases probability of placing profitable trades. I suppose that what I am asking is if anyone in the mql4 community is familiar with level 2 data and has had previous experience using it successfully. I wish to build a manual or automatic strategy that uses level 1 and level 2 data. If you are not familiar with level 2 data, it is simply data showing the current power of bulls vs. bears aka "order book".
Thank you.
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Hi all! I am watching my mt4 terminal charts and notice that sometimes there are these "spikes" in price. Surely a coder in the mql4 forum has created a strategy to "capture" these profits when the price spikes very high/low, very quickly. These spikes must be created by traders placing buy/sell orders in the market therefore creating short and quick acceleration in volatility.
If anyone in the mql4 community has created a successful strategy that captures these spikes, feel free to message me your thoughts if you wish. I wish to write a strategy that will capture these spikes in price. I believe that I have the coding skills but lack the strategy logic to complete the task. I am almost 99% sure that a coder in the mql4 community has created such a strategy.
Thank you.