what is ask price line & bid price line in forex
Have you wondered what ask and bid price line means on a forex chart and how important it is? Some beginner traders even delete them from their charts without knowing how useful these lines are. I welcome contributions from other MTL community members to answer this overlooked but important question.
For MT5 users, go to your chart settings and enable bid price and ask price line, you will see two lines appear on your chart. The upper line is the ask price line while the lower line is the bid price line.
Bid Price Line
For a buy trade protected with a stop loss, when the bid price line touches your stop loss line, then your stop loss will come to life and you get closed out.
Ask Price Line
For a sell trade protected with a stop loss, when the ask price line touches your stop loss line, you get closed out too.
Do Not Disable The Bid/Ask price Lines
I do not think you should disable the bid/ask price lines from showing on your screen even though they may seem like a burden. These lines help you know when your stop loss is about to come alive even without price reaching it.
Many new traders wonder why their stop loss was hit when price didnt get to it, and now you have a clue as to why.
