Trades or Mids?

blipper

Newbie
8 0
I wish to trade U.K.stocks using daily charts plus intraday charts for entry.
What I am unsure of is whether the charting I use should be based on midprices or last trade prices?
For instance, Advfn.com uses trade prices for SETS stocks(OHLC) and only uses midprices for non-SETS stocks, whereas for all stocks Money-am uses midprices (OHL), and last trades for closing prices only.
It occurs to me that which criteria one uses must make a difference to resistance/support levels, highs/lows, etc., and must therefor affect ones analysis of price movement.
Is there in fact a consensus amongst chartists/technical analysts as to using mids/trades- as if not, then wouldn't that mean that some analysts would be judging resistance levels etc. to be at different levels to other analysts?
Also, is this possibly just an issue for uk stocks due to wider spreads?
I'd appreciate any enlightening on this.
 

GruntnoWay

Active member
159 2
Mids are more reliable and less prone to spikes. Trades can also be manipulated at the open and the close. I would take mids on all stocks especially if you are tracking real time. Trades bounce between bid and ask all day.
 

blipper

Newbie
8 0
Thankyou, GruntnoWay, for your reply.
What you say makes sense.
Following on from that, what I need to know is whether in fact chartists/analysts in general uses midprices- i.e. whether there's a concensus about this- as there would be no use using a particular criterion if most others are using the other, for the reason I stated above?
Thanks again.
 
 
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