Fading news spikes: what's your rule for trading the overshoot?

A release spikes price far beyond what the data justifies, and the fade trader sells the overshoot. The entry must be fast, the stop tight, and the discipline absolute — the spike can extend before it reverts.

Do you fade spikes?

• the conditions that make a fade valid
• how you time and size the entry
• the spike that kept going and taught you the stop

The bid, ask and slippage guide explains the fills you'll get in those seconds.