I'm wondering if an indicator exists that plots the Bid Ask Spread?
I've recently changed one of my Forex accounts to variable spreads, and I've noticed the spread difference could be useful in many situations.
For example, higher spreads usually occur around news events and periods of low liquidity. Rather than trying to filter trade entries using volume, day/time etc, I think the spread could be a more effective indicator of market conditions in many cases.
Such and indicator could also help reduce trading costs. If the fixed spread is normally 3 pips, only trade when the spread is below 3 etc.
I don't see this being too hard to code, but I thought I'd check to see if it already exists somewhere before I attempt it.
I've recently changed one of my Forex accounts to variable spreads, and I've noticed the spread difference could be useful in many situations.
For example, higher spreads usually occur around news events and periods of low liquidity. Rather than trying to filter trade entries using volume, day/time etc, I think the spread could be a more effective indicator of market conditions in many cases.
Such and indicator could also help reduce trading costs. If the fixed spread is normally 3 pips, only trade when the spread is below 3 etc.
I don't see this being too hard to code, but I thought I'd check to see if it already exists somewhere before I attempt it.
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