Question: The GBP/USD 1 HR chart displays a long dip. This dip is seen on charts 4 HR and below, however not on the daily chart. This dip is also not seen on the FXCM charts on any timeframe. Why is this?
Answer: This is due to something called a misquote. Alveo receives quotes for currency prices from multiple liquidity providers and it offers you the best price. Sometimes the liquidity providers send an incorrect quote. Alveo cannot determine the difference between a correct quote and one that is incorrect so it displays the quote. This is what will cause a long dip that doesn't show up on all timeframes.
Although this inconsistency negatively affects trading, we have sophisticated systems in place that significantly reduce misquotes on the Alveo platform. Only about one in every 100,000 misquotes slip past our filters.
To learn more about misquotes click here.