EURUSD Great Lesson on Manipulation - Happy New Year!
Hi traders!
We were looking for a short on this pair at the 1.052 resistance figure and unfortunately we got stopped out due to this enormous volume spike. We had out stop loss in place so nothing wrong with taking the loss, but this is a great example of why we should avoid trading on days of low volume.
Today is the last trading day of 2016... with most head traders away from their desks already going into the New Year weekend the order flow is limited by large institutions. This leads to easy manipulation.
Whenever there is low volume it takes far less to move the markets than it would if there was regular liquidity. This makes for the likelihood of random volume spikes that we see here to day.
It is a great learning experience though and it should be noted. It is always smart to stay in cash leading up to a holiday!
I hope this is valuable to some traders and I wish you all a happy New Year! Enjoy the weekend!!
We were looking for a short on this pair at the 1.052 resistance figure and unfortunately we got stopped out due to this enormous volume spike. We had out stop loss in place so nothing wrong with taking the loss, but this is a great example of why we should avoid trading on days of low volume.
Today is the last trading day of 2016... with most head traders away from their desks already going into the New Year weekend the order flow is limited by large institutions. This leads to easy manipulation.
Whenever there is low volume it takes far less to move the markets than it would if there was regular liquidity. This makes for the likelihood of random volume spikes that we see here to day.
It is a great learning experience though and it should be noted. It is always smart to stay in cash leading up to a holiday!
I hope this is valuable to some traders and I wish you all a happy New Year! Enjoy the weekend!!