Yet again I find myself puzzled my a weird conundrum.
When choosing to view charts, for example to find candlestick patterns, deciding to view the Bid price or Ask price as displayed produces starkly different results on some pairs.
That is the charts look different if I choose to display the Bid or Ask price.
Which one is optimal to use, or generally how should I choose between the two?
Moreover the difference is sometimes starkly different, shouldn’t it be only equal to the bid/ask spread, but instead it fluctiates.
(I am using FXCM Marketscope 2.0)
Pleeease help !
Choose one or the other, usually the bid is most used.
The reason for the variance is spread expanding & contracting with volatility.
If your strategy gives starkly different results because of this, then I’d say you need to change your system, having a strategy that is so sensitive surely cannot be sustainable in the long term.
I completely agree with PPF. A system needs to adjust to all Market Conditions to survive over time. Flexibility is an incredible trait to develop as a Forex Trader.
FSK
Maybe you could try using the bid or ask depending on the direction of your trade i.e. Bid price for shorts and Ask price for longs.
I see thanks for the info
I will try to adjust it. Even so any advice on using bid or ask price to be displayed on the chart ?
Use the bid to paint the candles.
In time you will be able to see both.