Nothing abnormal. Every day there are thousands of spikes and gaps in this world. One of the best places to experience spikes and gaps is to trade Shanghai INE International Energy Products like crude oil, copper.... It has morning tea break lunch break afternoon break, night break resulting in many spikes and gaps here and there.
what i mean is how would i find out what is causing the spikes so i can analyze it and make a strategy. isnt that how you create a trading strategy by understanding what creates the move?
To keep chumps and schumks out. I watched a T/S go all the way up and all the down before before premarket opening. It occurred during a Sierra Nevada corporation take over of Orbital Sciences. Wanted to get out of the trade with a 200% profit margin back in 2009ish. Pre and Post markets spikes are a good tool to locate sectors. Shin
Take for example Shanghai INE's crude oil 1. before the afternoon break no major news. So INE crude oil prices hardly move 2. during the China afternoon break. Iran blocks the Strait of Hormuz 3. after the afternoon break Crude oil prices will gap up massively. So if you trade INE crude oil, there is no trading opportunity because of the massive gap. If you trade say WTI or Brent crude oil, you might be able to earn tons of money. In most cases, you will know the reason for the gap many hours/days later (or never !!!!!!)