Buy, Mid, Sell Price

[RichB-Trader]

Hello,

 

Bit of an obvious question but wanted to check, as on a few occasional I have been stopped out by only 0.1% of the price so want to make sure I am using the right one.

 

For a long position, I open the position on the BUY price, and close on the SELL Price.

For a short position, I open the position on the SELL price, and close on the BUY Price.

 

Therefor if you are targeting (accurately) support and resistance zones at say 1000 on a certain stock, I should leave a little more headroom to take account of the spread which lags the overall price?

[Caseynotes]

Hi @RichB-Trader,yes, to relate to it as per the bid/ask that you can set your price line at (bid/ask/mid). To get into a trade you buy the ask or sell the bid, to get out you do the opposite.

Better to set the price line to mid and keep an eye on the width of the spread as S and R levels should be treated with a little lee way, think zones rather than lines.