(There is now a post further down which shows a diagram for more clarity on this topic)
I am wondering whether the market makers are following the bid price as most of us are. I have noticed with single pip accurately the bid price often hits fib levels and then reverses.
The significance to me is that if the market makers are following the BID price then it has more strength. I would therefore adjust for spread only when buying is relevant ie. entry when long, exits when shorting, since the BID price (and not the ASK) will more strongly adhere to levels of support and resistance. This would be more important for pairs with wider spreads and especially over shorter time frames where single pips can make a difference in the r:r.
I am wondering whether the market makers are following the bid price as most of us are. I have noticed with single pip accurately the bid price often hits fib levels and then reverses.
The significance to me is that if the market makers are following the BID price then it has more strength. I would therefore adjust for spread only when buying is relevant ie. entry when long, exits when shorting, since the BID price (and not the ASK) will more strongly adhere to levels of support and resistance. This would be more important for pairs with wider spreads and especially over shorter time frames where single pips can make a difference in the r:r.