Spike
Spike is the large upward or downward movement of a price or value level in a short period.Spikes be possible in all Commodities of MCX Trading.Spikes in MCX Usually happen in Evening Trading Session Due to U S Fundamentals.Generally Fundamentals/News are the driving factors for these Spikes.
Past Identification of Spike s
In 2012-2013 Indian Budget Time Gold gave a Spike for 700 points jump in a second on March 16'2012.During the time Inventory data of Crude Oil & Natural Gas May likely to Spike s in Price level in MCX Market trading.Stop loss orders not triggered due to price jump When Market giving Spike in price level.During the time of U S Federal Reserve & European Central bank Rate announcement are the crucial time for Price Spike.
Traders should a bit while cautious while Fundamentals like economic calendar data release time,Inventory data ,Budget Time & Monetary policy meeting Times.
DPR -Daily Price Range in MCX Trading
Every commodity is giving different kind of movement in an every trading day.Every day MCX market is giving Normal range of trading levels in their trading.MCX Exchange fixed Trading Range for every commodity in an every trading day.That Range is Daily Price Range shortly called as DPR.This DPR varies by commodity to commodity due to their volatility of that commodity s nature.
If an abnormal circumstances/unforeseen fundamentals hit the MCX trading,MCX commodities turn upper//bullish/Buying side or down/Bearish/Selling side.When MCX Market in an abnormal fluctuation this Price Range may possible to ride off.When any MCX Commodity reaches the upper limit of daily range is called Upper circuit/upper freeze.If a commodity in an Upper freeze mean there is no seller available in the MCX market to sell that Particular commodity.If a commodity reaches the lower limit of daily range is called Lower Circuit/Lower Freeze.In Lower Freeze mean there will be no buyer in MCX market to buy that commodity that time.
In any commodity in MCX trading breaching Upper/lower circuit/freeze ,there will be cooling Period for 15 minutes.In that cooling period there will be no trading except if buyer /seller willing to buy/sell that particular freezing Commodity.Oncce Cooling Period over,the Daliy Trading Range will be extended little more.
Is it advisable to trade in Upper/lower freeze/Spike Timings in MCX
During these kind of abnormal trading movement timings,avoiding the trade is the best solution for all except well expertised person.
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