I am more then sure that many of you experienced a stop loss hunting – or at least the feeling of it when the price goes all the way to you stop loss and then suddenly it changes the direction. Usually if you are using a good broker you should not have such kind of situations – even if your stop loss got hit – but there are many brokers who like to do that.
Some times you can get hit on your StopLoss because of the very big Spread, not only because of the Spike – since on many charts you can see only the Bid price – the Ask price is quite impossible to be seen how it changed during the day – only real-time. A friend of us asked if we could program a special indicator that will show real-time the Spread and the Max and Minimum values of it during the day. Something which will look like in the below image:
Actually it was a really crazy idea – we never saw an indicator yet which could do such thing – we only heard that the max spread during news can be 5 times more then usual – but we never had the proof. Now – thanks to this unique indicator we can view which was the Max, Min and even average Spread during the day and even during the Big Forex News. We were shocked to discover that sometimes the spread can be up to 10 times more then usual. And if you are trading on lower time-frames then you could very easy get your stop loss hit.
If you want to find more about this click on this link to see what information reveals this unique indicator.