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Candle spike FOREX strategy

Spikes signalize rapid price movement that was almost immediate overcompensated by the movement to the opposite direction. In chart they are represented as candles with exceptionally wide wicks. This forex strategy takes advantage of such a condition that frequently occur on test and news releases. Strategy trades in difficult conditions, therefore good ECN/STP broker is necessary to support you in such an endeavor.

Used forex indicators

EMA (exponential moving average) 7: Add additional lines 500 and -500.

Apply in any timeframe above 5 min.

For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit. Automatically copy the traders that are already profitable.

Forex strategy rules

SELL:

Candle spike FOREX strategy

We will be looking for extremely wide upper wick of a candle touching the +500 line above EMA.

We enter short immediately on its close. Stop loss is placed above the high of a wick.

Take profit: Look to close with profit at least 1/3 of risked amount. Exit the trade manually based on price development. Better sooner than later.

BUY:

Candle spike FOREX strategy

We will be looking for extremely wide bottom wick of a candle touching the -500 line above EMA.

We enter long immediately on its close. Stop loss is placed below the low of a wick.

Take profit: Look to close with profit at least 1/3 of risked amount. Exit the trade manually based on price development. Better sooner than later.

Candle spike FOREX strategy

Notes: Price tends to move rapidly in those situations, stay close to the chart. Spread may be increased during volatile conditions, make sure your account will be OK with it.

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“Trading FOREX since 2006. Full time trader and web developer since 2013. My two biggest hobbies are trading and web development. In TheForexKings I managed to connect both of them. Even after 12 years of trading I still have the same passion for the market as at the beginning. The aspect I enjoy the most : development and testing of new ideas.” 

 

Only in 2016 - 2017 we have created more than 400 forex strategies. During this period we have also developed and published +200 MT4 Expert advisors based on those strategies. We are dedicated to provide you with viable and complete trading systems that have thrived in extensive historical testing. We want to give you complete and transparent trading solutions, that once mastered ,will set you financially free. We want to give you a fighting and winning chance in the market. ” 

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