HOW FOREX BROKERS MANIPULATE YOU TRADING? Real Example
Last month, I spotted a nice trading position on NZDCAD forex pair.
I shared that with my TradingView subscribers immediately after I placed the trade.
Though, the price moved exactly as it was predicted, the half of the members did not make any penny from this signal, while another half made a nice profit.
It happened because of one rare thing that I absolutely hate in trading.
Learn about a major frustration and market manipulation in trading, that no one will tell you about.
Here is the trading position that I spotted.
It was a classic price action trading setup based on a double top pattern.
Trade was taken on a retest of a broken neckline aiming at the closest strong support and stop loss lying about the tops.
Though, initially, the market started to fall rapidly. But it reversed, not being able to reach the target.
Watching that bullish rally resumes, I send the signal to my students to close the trade on entry, and I also did that personally.
I felt myself quite sad that I did not mange cash out from that trade.
Later on in the evening, surprisingly, I started to receive multiple thank you messages from my members that they made a good profit with that signal.
How could it be?
I decided to anonymously ask the members, how did they close the trade.
More than half of the members replied that the trade reached take profit.
Can it be possible? My TP was not reached and it was still quite far from the lowest low.
Now, examine the trading setup on NZDCAD on charts of different popular forex brokers.
On these 6 charts, you can see NZDCAD pair on OANDA, CAPITALCOM, IC MARKETS, ICE, FXCM, FOREX.COM brokers.
While in half of the instances TP was not reached, in other half, TP was reached and the price went even lower.
Why it happened?
There are the rare situations in Forex trading, when the price action on one broker can be very different from another.
It happens because different brokers have different liquidity providers, spreads, order execution methods and so on.
That is why the selection of a good broker is so vital in trading.
If you use TradingView for chart analysis, make sure that you watch all the instruments of one broker.
Moreover, once you start trading your strategy, always check how the price acted with different broker quotes.
If you will see a lot of instances that your tp is not hit, while on another broker it would, it will be a signal for you to change the broker.
When I started learning trading, no one told be that important nuance of Forex trading.
But knowing that is a very significant step in your trading journey.
❤️Please, support my work with like, thank you!❤️
I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
