Indicators: WelchCandlesticks_v2
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WelchCandlesticks_v2:
Change of the spread is being reflected in the candlestick formation, which you can use to more accurately place your stops and not get kicked out of a trade when it might just be challenging a price before making a huge swing in the direction you initially placed your trade.
In MetaTrader 4 the calculation of candlesticks is based on Bid data, to see the current Ask price you need to check "Show Ask line" in the chart properties. It's important to see the Ask prices when placing Stop Loss.
When you add this indicator to the chart, it will build all new candlesticks with the spread data included as part of the WICKS for the candlesticks. This doesn't affect OPEN/CLOSE/LOW, only HIGH. (Bid is always the LOW, so it doesn't affect that, which is why I was only getting stop lossed out of my SELL trades, because they would reverse and the spread would rise higher and take me out before I could see it happening and close my positions... The automated way to fix this for when you're not watching the chart is to always watch the ASK price and calculate the spread and what-not, but I wanted to visually see when I was cut out of a trade so I could better understand why...)
And one more chart showing an ENORMOUS spread spike a while back just before the price went further down...
Author: Tim Welch