There is bid, ask, and mid price charts. Which one should I use for technical analysis? When I switch, some candlebars go wild.
For example in one chart resistance line is broken and in another, it is not. Looks important and couldn’t find any good and clear info about it anywhere.
With Ask Candlesticks all candlesticks go up, with Bid Candlesticks goes down and with Mid they stay in the middle between.
Did Babypips education cover this anywhere? Really gives me a headache.
You mention breaking a resistance line as a feature on your charts, which can be cancelled by a different price selection. Simply seeing a support or resistance line being broken by a moving price is often not a signal to enter/exit a trade, I think most traders would be looking for some measure of confirmation before making a trade decision. For example, one or more candles closing above resistance, or an upward bounce off resistance after it has been broken.
Most charting programmes use the bid price for their chart display. If selecting one of the others makes a critical difference between your decisions, maybe your time-frame is too tight. But its more important to select one price type and always stick with it.
I was advised by Oanda support to switch between Bid and Ask chart to able to clearly see SL and TP, since they can be triggered far from the current price if the chart isn’t correct one, depending on whether you go long or short.
One option is to use MetaTrader’s option for chart to show both at the same time, which is most attractive solution to me at the moment.
Another option is to use price indicator right on the chart with High Bid and Low Ask if available.
Use a broker that offers a trading platform where this feature is integrated from before. This will take the stress off of you. MT4 could come to your rescue.
Firstly, you need to select a certain type of price and work with it, and secondly, the time frame may be too narrow, and the offer price for displaying your charts may be different.