Your chart shows the bid, but shorts stop out on the ask

[Amanhasnoname]

A detail that explains a surprising number of "stopped out by one pip" complaints: standard charts draw bid prices. A buy order closes at the bid, so a long's stop or target lines up with what the chart shows. A sell order closes at the ask, which the chart does not draw, so a short's stop triggers when the ask reaches the level, and that is the bid plus the spread.

With a 0.6 pip spread the difference is small and easy to ignore. With a 2 pip spread at a session transition, a short stop placed just above a recent high, where the bid never traded, is hit anyway. The candle on the chart stops short of the line and the trader is left convinced the move was manipulated.

Fixes:

- Add an ask line to the chart; most platforms have a setting for it
- Place short stops above structure with the current spread added, not just a pip or two
- In a logger, record whether closed shorts exited at an ask higher than the highest bid of that candle

The same logic applies to short take-profits, which get filled slightly early on the ask side, and to long entries at the ask.

Do you size stops differently for shorts and longs, or has the ask-side effect never shown up in your fills?