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Understanding the difference between bid chart and ask chart

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Shadow Trader
Posts: 5438
Joined: Wed Sep 09, 2026 5:19 pm

Understanding the difference between bid chart and ask chart

Post by Shadow Trader »

Most platforms draw candles from bid prices, but orders trigger on different sides of the spread depending on direction.

A long position exits on the bid, so a long stop or a long target triggers when the bid reaches the level, which matches the chart. A long entry, though, fills at the ask. A buy limit only triggers once the ask drops to the level, meaning the bid chart has to trade roughly one spread lower.

Shorts mirror this. A short entry and a short stop do not use the same side. The entry sells on the bid, while a short stop is a buy to close, triggered when the ask touches it, one spread above where the bid chart peaked.

A trader who places a short stop just above a swing high, based on the bid chart, may find it triggered while the chart appears to stop a pip short. Nothing was manipulated. The ask line simply was not visible.

Many platforms offer an option to display the ask line. Turning it on removes a lot of confusion.

Is the ask line displayed on charts here, and has it ever explained a mysterious stop-out?
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