If you talk about Forex, definitely there will be discrepancy because Forex is a OTC, over-the-counter, kind of thing. So there will always be difference in spread in terms of the charting software that you use versus what you actually see on the broker site.

So important thing is as long as the discrepancy is not huge, then I think generally it’s fine.

Have you encountered any situation where what you see on the chart is drastically different from what you see on the broker’s price that they give you? So it’s usually just a pip, a few pips difference, right?

Which is generally fine, I don’t think that’s much of a concern.

And that is also one reason why I think you’ve got to be more careful if you’re going to go shorter and shorter term. Because the shorter term you go, the bigger the impact the difference in the pips is going to affect you.

If you are going longer term, then a few pips actually doesn’t really makes much of a huge difference. Okay?

So if you do notice that the charting software that you use is showing a huge discrepancy or huge difference, compared to the charting that you see on your broker site or the price that the broker quote you, then you might want to use the charting tool to do your analysis, right?

And go back to your broker’s chart just to make sure things are generally still pretty much the same, not much of a difference. And then if not much of a difference then you just focus on executing from there.

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Philip Teo

Founder & CEO at Traderwave Pte Ltd
Philip Teo is an entrepreneur, speaker and trading coach who specialises in the field of Technical Analysis of the financial markets. He is currently the Founder and CEO of Traderwave Pte Ltd, a financial technology company that offers a web charting application to global traders. He has conducted many trading seminars and appeared on national television before. He is also currently an official speaker and trainer with SGX Academy. Learn more about him at his Google+ Profile, LinkedIn Profile and Facebook Profile

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