In order to set precise entries and stops, a trader must know BOTH the buy price and the sell price of a currency pair. This article will show you exactly how to do that with Marketscope charts.
Most FX charting packages display the sell price when you bring up a chart. That is ideal when you are using that chart to set a sell entry order or place a protective sell stop. But if you take the spread into account, that corresponding buy price may be a couple of pips higher.
So in order to set buy entries or protective buy stops, you want to see the buy side prices displayed on your charts instead of the sell side prices.
This is important if you intend on buying on a move up through the recent high or setting a protective buy stop above resistance. But with most FX charting packages, you have to guess what that buy price was at the time by adding the spread to the sell price.
Created with Marketscope/Trading Station II
One of the most valuable tools on the FXCM Marketscope charting package is that you do not have to guess what the buy price is before placing a buy entry order.
As the chart above shows, you simply click on the “A” and the chart will change over to the buy prices. The “A” stands for Ask, which is the price where you can buy the currency pair. The “B” stands for Bid, which is the price where you can sell the currency pair. This offers the trader a look at where the market has really traded on the buy side or the sell side.
Proper entry and stop placement is key for long-term success in your trading and the Marketscope charting package makes it easier to place those buy entries and buy stops exactly where you want them.
---Written by Richard Krivo
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