     |
Profit From Exhaustion Spikes
The exhaustion spikes Forex setup is a terminal pattern and usually signals the changing of trend direction, at least in the short term. With this Forex method, the change happens quickly but if you can identify the spike, you can usually profit from it. These rapid changes in price direction are often the result of external influences, such as occurs at data releases in the Forex market. They often occur during periods of higher volatility and are like a panic reaction to some news. The ensuing trend direction change is quite abrupt and catches many traders off guard. The size of both bars should be significant, that is their length should be larger than the surrounding bars. The opposing up/down bars should be close in size to each other. They are quite obvious and do stand out on the price charts. If you can get in early on the action, there are often handsome profits to be had. Be sure to use protective stops as these formations are a sign of a whippy market.
|
