market would need to reverse. Notice that after an elongated down-trend the currency pair bounces from the same price on two separate occasions. Reversal strategy to allow traders take advantage of these spikes. You can choose to receive a pop-up alert, email or SMS (push notification) when there is an extreme reached on any currency pair. If there is an extreme in one direction, look for a recent high or low as an area where there would be a build-up of stop losses. The main way to trade with the indicator is to look for volume/position extremes and trading against them (contrarian trading) such as the examples below. With billions of dollars' worth of forex transactions placed every single day it is clear that there are many participants in the forex market. Ex4 custom indicator is deployed as a technical tool that places a marker on the activity chart in relation to the divergence between the bar sizes and trade volumes. If 70 of traders and trading volume are long (buying you would be looking to short (sell). Double, spike, breakout, the Double, spike, breakout looks to play a continuation move in the currency pair, expecting the support (or resistance) that has reversed price in the past to become broken on another attempt.
So prudent rules of money management when trading breakouts apply; and risk-reward ratios may be more favorable at 2:1 or greater (looking for 2 dollars of profit (or more) for every 1 dollar risked). Reversal, strategy, buy Trade Example. Forex Sentiment Indicator Trend Trading. Spike, breakout, its important to remember that, like any breakout, price can easily reverse against us and move for an extended amount of time. Or perhaps this price is a strong level of support (much like.