Spike Trade USDCAD

Got a spike alert at the top of the 1pm hour on USDCAD . CAD has been a big player in the market's volatility due to the price of oil. Using this alert and setup as a trigger to test for a top.

Trade closed: stop reached:

Price went a little higher into my stop. I will be wary of trying to top/bottom pick using spikes in isolation.

One key factor missing was the theory of playing the stop runs associated with spike bars. In this case price had not reached any sort of consolidation that would have created a range to hold ideal stop orders. A great recent case in point is in the EURCAD all the way up on the Monthly timeframe.