Post #2275 by elann on the Mechanical Investing board

Investment Strategies / Mechanical Investing

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You'd get a more accurate view by plotting the ASK, because you are assured you can get it at the ASK. The ASK is undoubtedly from a market maker.

I don't think this is true. Someone placing a limit order to buy inside the spread pushes up the bid. And someone placing a limit order to sell inside the spread pushes down the ask.
I do about the same number of transactions on the buy and sell side, and the effect is symmetrical.

Elan

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