Bid && Ask && Spread

[[Deleted]]

Good afternoon. I would like to speak out on one issue, listen to the opinion of others, I do not claim to be right, it is my opinion.

The price, at every point in time, is not a point, but a range formed by a bid at the bottom and an ask at the top. From this you can deduce the following consequences:

• The resistance line should be built on the bids;
• Support line should be formed according to bids;
• On buying, stop loss should be set behind the Bid of the reversal pattern;
• on sale, stop loss should be set behind the Ask of the reversal pattern
• ....;

The problem I see is that we only have the exact values of Bid and Ask at the moment, the exact values in the past are not clear.

Conclusions:

• Change the way the bar is formed - the high bar is based on the ask, the low bar is based on the bid;
• Change the system of storing spreads in the history - for each bar we should store the information about the maximum spread value (I assume that spread is currently being recorded upon bar opening).

[Vladimir Kustikov]

papaklass:
You just have to keep two prices: Bid and Ask as they exist in nature.

History is stored in minute candles, they have no Bid or Ask. So the idea of binding high=>ask and low=>bid is quite good, but then what about open/close? Should we take the values inside the spread?

[[Deleted]]

Vladix:
The history is stored in minute candlesticks, they have neither bid nor ask. So the idea of binding high=>ask and low=>bid is quite good, but then what about open/close? Should we take the values inside the spread?

A choice can be given:

• To build on the bid;
• Build on asc;
• (bid + ask) / 2;

Although in my opinion, open and slose are not so important (imho). And if you take into account that close and open may differ due to different server time, then the fluctuations within the spread size are crumbs.

[[Deleted]]

Another plus to the approach is that it answers the question of how to "mix" bid and ask. For example, if you enter a history of both bid and ask, the question arises as to how to look at it all.

[[Deleted]]

I wonder what the MC thinks about this? Are there any price reforms foreseen?

[Slava]

220Volt:
I wonder what the MC thinks about this? Are there any price reforms foreseen?

Did you know that in MetaTrader 3 bars were built as follows: open and close = (bid+ask)/2; high - maximum ask; low - minimum bid?

[hrenfx]

High Ask and Low Bid make minimal sense for trading.

[Анатолий]

stringo:
Did you know that in MetaTrader 3 bars were built as follows: open and close = (bid+ask)/2; high - maximum ask; low - minimum bid?

I don't think you should make such a mess in MetaTrader 5, I am against it :)

[[Deleted]]

stringo:
Did you know that in MetaTrader 3 bars are built as follows: open and close = (bid+ask)/2; high is the maximum ask; low is the minimum bid?

No, I didn't know that. I wonder why such a scheme was abandoned?

Hrenfx:
High Ask and Low Bid have a minimum meaning for trading.

I totally disagree, I think that the highest Ask and the lowest Bid make the most sense. When the spread is fixed there is no problem, but now it is less and less.

[hrenfx]

It has nothing to do with agreeing or disagreeing. There are ironclad arguments in the link above as to why High Ask and Low Bid carry minimal information for trading.

[[Deleted]]

hrenfx:
It has nothing to do with agreeing or disagreeing. The link above is an ironclad argument as to why High Ask and Low Bid have minimal information for trading.

It is someone else's opinion, which is very far from mine (some unclear words). For me what is more important is that I need maximum Ask and minimum Bid to place stops, simple as that.