If you're trading with MetaTrader 5, you've probably come across OHLC candlestick charts. But have you ever thought about how the ask and bid prices influence these candles? Let's break it down!
In this setup, the high of the candle connects to the ask price if it's higher than the current high. Meanwhile, the bid price typically aligns with the close price, but we incorporate it into the logic as well. This means the low of the candle will link to the bid price whenever it dips lower.
Since the ask price is always higher than the bid, it makes perfect sense to visualize the candles this way. This method ensures that no prices or spreads are hidden from view. You can easily activate the ask line on your chart, but seeing ask prices in this format makes them more tangible.
Check out the comparison below:
Normal OHLC Chart:
OHLC with Ask and Bid:
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