AI Hub 24 November 2023 What Is the Definition of an Explosive Rally in the Forex Market? An explosive rally in the forex market is a rapid and significant increase in the value of a currency pair. This type of rally is usually caused by a sudden shift in market sentiment, often due to an unexpected event or announcement. The term “explosive” refers to the speed and magnitude of the price movement. Explosive rallies can occur on any time frame, from minutes to months, but they are most commonly seen on short-term charts such as 5-minute or 15-minute charts. These rallies are often accompanied by large volumes as traders rush to capitalize on the sudden move. Explosive rallies can also be caused by large institutional orders that are executed over a short period of time. Explosive rallies can be both profitable and dangerous for traders depending on...
