Anyone see the scalp up in EUR/USD just at 5:19 today?

Discussion in 'Forex Trading' started by cszulc, Feb 26, 2008.

  1. cszulc

    cszulc

    Was sitting at my desk, EUR/USD pair was trading rather quietly at 1.4980, and within a few minutes scalped up to 1.5030.


    News?
     
  2. cszulc

    cszulc

    Short at 1.5041.
     
  3. I felt it. :mad:
     
  4. ScapGF

    ScapGF

    No news, just a TON of stops being triggered. That caused a domino effect jump which is why I shorted at 1.5031 thinking that things would come back down once traders were able to reassess:)

    Although I got out for +10 pips and didn't hold :p
     
  5. blnbr

    blnbr

    Over 65 pips surge in 5 minutes with no news, but by triggered stops !?

    A forex newbie is wondering how this big Euro market works, which is supposed to be hard to manipulate. :confused:
     
  6. ScapGF

    ScapGF

    1.5000 likely had TONS of stops lined up. So when the price made the surge to 1.5000 it began taking out lots of those stops and I am sure, to some degree, triggered buys already set in the market.

    Also notice that the main move occurred in 1 min :)

    Keep in mind that events like this are atypical. Volatility at that time of the day is always nil so the fact that we moved that much helps defend the notion that stops were triggered. And as you can see the price has slowly come back to near the 1.5000 level.
     
  7. blnbr

    blnbr

    Looks like triggering stops is also a way to manipulate the Euro price on the short-term basis by the big guys. If that's the case, my earlier notion of "Euro market is hard to be manipulated" need to be changed.

    Did you also see the EURO.USD price spread suddenly widened to about 10 pips around that time yesterday?
     
  8. ScapGF

    ScapGF

    Spread differs between brokers, I saw 6 pip spread but it went back down after a few minutes.
     
  9. blnbr

    blnbr

    I use IB. Their spreads are normally tight. When I saw the 10 pips spread yesterday, I thought something was wrong with IB's quote system. It turned out the big move was coming.
     
  10. ScapGF

    ScapGF

    The spreads widened before the move or DURING the move? If before, how long before?
     
    #10     Feb 27, 2008