Thursday, December 26, 2013
Flash Spike During Holiday Sessions
Copper Futures (HG) and US 30Y Treasury Bond Futures (ZB) experienced flash spike during thin-traded holiday sessions. They adjusted ZB high to 131-12 though. One friend asked how to avoid such trading situation. Well, 食得咸鱼抵得渴. Unless you avoid the market completely, you will probably come across such situation in your trading journey.
How about taking advantage of such occurrence? For example, trade the opposite direction when the minutes candlestick shows "shooting star" or "hammer" or "engulfing patterns"? I don't have the statistics but you may back test on this idea. I remember one day in 2008, FKLI did a similar "flash spike" in a lazy Friday afternoon. Here is the daily chart:
What happened next? The chart speaks for itself.
马年到，新春闹，开开心心生活好; 祝福你，乐逍遥，马到成功喜气到; 扬鞭策马向前跑，年年岁岁吉星照; 马年福瑞长相伴，龙马精神得意笑。
I am writing this post to explain few types of orders we normally use in trading. Market - This is the most basic and frequently ...