After a big release, gold often spikes hard and then hands part of the move back. There's opportunity in that, but the risk is real and this is not a beginner's trade.
The core setup
The News Spike Fade trades against gold's first spike after a high-impact release like CPI, NFP or FOMC. Once price lurches hard one way, it can retrace part of the way back toward where it sat before the number.
How to enter
Don't enter the second the number drops. Wait for the first spike candle to close, mark the 50-61.8% retracement of that spike, and only fade it if price reacts clearly at that zone.
Managing the trade
Put the stop beyond the extreme of the spike, typically 5-10 USD depending on volatility. Target the price area that held before the news. Trade smaller than usual, because slippage and spread around a release are nearly impossible to predict.
When to skip it
Beginners, skip this one. If you're not used to reading the news, or to how fast gold moves the instant data prints, standing aside is the smarter call. One bad fill on slippage can blow up the whole plan.
Treat this as something to study and test on demo, nothing more. Don't let it turn into chasing the news on emotion.
Contact: https://t.me/kentfxs
Publishing note: This content is not investment advice. Always test on demo and take responsibility for your own risk management.