Bid or ask price on your charts? | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

BID/ASK prices differ on ORDER window than shown on charts 13 replies

Tool that builds charts from average bid/ask price? 2 replies

MT4 S1/S5/S30/M10/H2/H3/H12 Bid/Ask Charts 33 replies

Bid and Ask charts 1 reply

Price on charts vs. Bid and Ask price 1 reply

Attachments: Bid or ask price on your charts?
Exit Attachments

Bid or ask price on your charts?

  • #1
  • First Post: Nov 20, 2009 6:56pm Nov 20, 2009 6:56pm
Hi all, this may sound like a silly question but which one is better served to have on your charts.
When you draw your trend lines and fib lines, there are a few pips difference between bid and ask as we know.

I have also noticed while trading ( real ) as opposed to demo my trades sometimes trigger a pip or more before it hits the price I set.
This is annoying as it will trigger just under my price and retrace whereby if it didn't I would have been better off.

So I don't know whether or not this relates to slippage or what not but it never occurs on a demo.

I trade of bid price and set my charts to bid price is that right or wrong? please advise.
  • #2
  • Nov 20, 2009 11:54pm Nov 20, 2009 11:54pm
Isn't it obvious that when you are selling you should be looking at Bid price and when you are buying you should be looking at Ask price?
  • #3
  • Nov 21, 2009 1:54am Nov 21, 2009 1:54am
Quoting enivid
Isn't it obvious that when you are selling you should be looking at Bid price and when you are buying you should be looking at Ask price?
Thats correct when you are placing the order, but when you have the trade running and want to set the stop loss at a certain place on the chart rather than x number of pips, if you are buying you are looking at the bid price to hit it and when you are selling you are looking at the ask.

In answer to ozpips question though, either is ok on your chart as long as you remember which one you need to look at both putting it in and taking it out. I don't know what to tell you though if it worked ok on demo and not now, unless of course the spread varies on live and not on demo. If you're then putting in a buy order it would make a difference.
  • #4
  • Nov 21, 2009 2:04am Nov 21, 2009 2:04am
Quoting luckylady
Thats correct when you are placing the order, but when you have the trade running and want to set the stop loss at a certain place on the chart rather than x number of pips, if you are buying you are looking at the bid price to hit it and when you are selling you are looking at the ask.

most of the platforms i've seen chart their prices off the BID price.

as far as setting your s/l or t/p. some platforms allow you to set a "stop if bid" or "stop if offer". however if your platform doesn't give you this option -- then as enivid says -- stopping out a long at say 1.5464 will stop you out when 1.5464 is the bid price. stopping out a short at 1.5464 will stop you out when 1.5464 is the offer.

so if you are looking at the chart and the chart is charted off bid...then for stopping out shorts you have to calculate the spread diff and adjust your s/l. e.g. you short from 1.5000 and your stop is at 1.5010...that means you you'll get offered at 1.5010 when bid is at 1.5005 (assuming 5 pip spread)...so set your stop to 1.5015 (offered) ...and you'll be out when your chart show's you 1.5010 bid. (assuming fixed spreads).

hope that helps.
  • #5
  • Nov 21, 2009 10:11pm Nov 21, 2009 10:11pm
Thanks guys for your input. Perhaps my question didn't really pertain to my problem.
My charting software shows prices in either bid or ask. You just click either button and it changes.
I know when your order is triggered whether buy or sell you instantly go minus a few pips ( spread).
The real issue is that my orders sometimes triggers before it gets to my price set.
For example AUD/USD is selling at .91539.Ask price is .91569 ( 3 pips spread)
I put in a buy order at the sell price of .91550, because I'm using bid price on my charting, so imo it's ready to trigger in 1 pip, but instead it will trigger at that point.
Am I getting myself confused?
When I buy at a price showing bid on the chart and i want to enter say 10pips later should i add the spread to the figure so hence allow for 13 pips?
My software allows direct trading from the charts that is where I'm getting confused perhaps I'm not allowing for the spread when I buy so the order triggers under the price I really want..

So hence if i want to buy say 10 pips above a close of a candle because my chart is in bid price should i add the spread so in this case enter 13 pips away?
Or doesn't it really matter as the candles prices very in high, low, close according to whether your in bid or ask mode?

Now it's really getting weird
  • #6
  • Nov 22, 2009 12:13am Nov 22, 2009 12:13am
Quoting ozpips
Thanks guys for your input. Perhaps my question didn't really pertain to my problem.
My charting software shows prices in either bid or ask. You just click either button and it changes.
I know when your order is triggered whether buy or sell you instantly go minus a few pips ( spread).
The real issue is that my orders sometimes triggers before it gets to my price set.
For example AUD/USD is selling at .91539.Ask price is .91569 ( 3 pips spread)
I put in a buy order at the sell price of .91550, because I'm using bid price on my charting, so imo it's...
If your chart is set to the bid price, if you are putting in a long (buy) 10 pips above the the close of a candle you need to add on the spread (because it will trigger on the ask price). If you are putting in a sell 10 pips under the close of a candle you don't (because with a sell you are putting the order in at the bid and taking it out at the ask).
  • #7
  • Nov 22, 2009 2:25am Nov 22, 2009 2:25am
Ahh thanks guys, I never really gave it much thought till I noticed a few trades triggered too early. I'd look at the high price of the candle and think well hang on it didn't get to my buying price?
Then after a retrace if it didn't come back up I'd be bitter that the trade shouldn't have actually been activated.
But alas I didn't figure on the spread, how silly...
I just thought it would hit my price on the chart (bid) and then deduct the spread once I've entered...
Oh well another piece of the puzzle solved.... Cheers
  • #8
  • Nov 22, 2009 3:08am Nov 22, 2009 3:08am
Also note that the bid ask on the chart and the bid ask on the tick chart of the trade window. Maybe open the trade window, take a screenshot, enjoy. Yup.

Or maybe it's just me.
Congratulations ScalaFX for coming out of the closet!
  • #9
  • Jun 24, 2014 3:29pm Jun 24, 2014 3:29pm
I did all my back testing on MT4 charts by hand.

What had not taken into consideration is MT4 charts display the bid prices only - doh!

Of course I have been having issues when it comes to getting buy limit orders filled. They are filling either before they reach the high when price moves up, or after price moves towards a low.

So what does this mean for my backtesting. If I was taking a long entry at the high of a daily candle, really that would have gotten filled before the high because I was looking at an bid chart. To make everything relative, do I have to be putting my buys in at the ask price?
  • #10
  • Jun 28, 2014 10:06am Jun 28, 2014 10:06am
  • #11
  • Jan 28, 2015 11:22pm Jan 28, 2015 11:22pm
Hi, I am new to forex. I am confused with bid ask and I seek for your help and clarity

1. When we buy, we look at the ask price. When we sell, we look at the bid price?
2. When we have an open buy position, lets say we set our target profit at 1.5000 and our stop loss at 1.4900. So it means our target profit will be triggered when the ask price reaches 1.5000? Conversely, our stop loss will be triggered when the bid price reaches 1.4900?
  • #12
  • Aug 20, 2015 8:03am Aug 20, 2015 8:03am
Attached Image (click to enlarge)
Click to Enlarge Name: tooslow2.png Size: 39 KB


Bid/Ask in upper left not matching bid/ask lines on chart. Bug?
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #13
  • Last Post: Feb 21, 2017 7:19am Feb 21, 2017 7:19am
Quoting ozpips
Hi all, this may sound like a silly question but which one is better served to have on your charts. When you draw your trend lines and fib lines, there are a few pips difference between bid and ask as we know. I have also noticed while trading ( real ) as opposed to demo my trades sometimes trigger a pip or more before it hits the price I set. This is annoying as it will trigger just under my price and retrace whereby if it didn't I would have been better off. So I don't know whether or not this relates to slippage or what not but it never occurs...
Choose one of these as a principle?
0 traders viewing now