What would you make of this

Ian Venner 2010.06.29 22:42

These pictures are explained by the information in the top left corner of the chart, the moving averages are both 13 periods on a 1 minute chart. What I found suprising is, scrolling back through days weeks and months of my 1 minute chart history the difference between the moving averages of the highest ask vs the lowest bid rarely varies by more than a few pips the highest difference I found is ten pips, the lowest is 5 pips. Is this due to the spread or the price action ? I have been trying to get my head around it, on one hand it seems the spread couldnt be the cause of the closely tied ma's because those ma's are just the extremes of price, highest ask - highest quotable price achieved during that minute, lowest bid- lowest quotable price achieved, but then on the other hand the bid and the ask are entirely related and tied so my question is, are those two closely corrolated MA lines a suprising fact of the price action or are they a fact of the spread ?

Ubzen 2010.06.29 23:28 #1

It'll make a good addition to Rosh's Picture list. :). I'm guessing the answer to your question is due to the spreads, if you're getting the deviation on Live charts that is. If you're seeing those deviations on back-tests then I'm just as confused as you. Because back-tests should lock in the spreads found in market proprieties at the beginning of testing.

problem about static varaible Two Brokers - 1 Back testing is positive

Ian Venner 2010.06.30 01:08 #2

no that is a live trading chart, my broker has fixed spreads, I was thinking more about it and i came to the conclusion it cant be due to the spreads it has to be the actual price averages really are like that because the highest ask price vs the lowest bid price is not governed by the spread, the deviation is widened by the spread by the amount of the spread but i believe that is the only effect the spread would have

Spread between two futures Does anyone know how TICK_VALUE for non account

Ian Venner 2010.06.30 14:32 #3

my original reason for making that chart was to show how when scalping using regular indicators you give away pips every time because they are tied to the bid price when in fact, sell orders go in at the ask price the indicator needs to be tied to the ask price for sell orders in order to gain the maximum advantage

MT4 Drag To Modify Help Trading using the error 130 puzzled

William Roeder 2010.07.01 13:03 #4

the difference between the moving averages of the highest ask vs the lowest bid rarely varies by more than a few pips

How far can you walk in one minute?

How far can you walk in one day?

The range won't vary much on a one minute chart. They will vary some through out the day on a one hour chart

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