The Bid is the highest price a buyer is willing to pay. The Ask is the lowest price a seller is willing to accept. The difference between them is the Spread.
High-volume stocks have 'tight' spreads (pennies), while volatile or low-volume stocks have 'wide' spreads. Trading in wide spreads can be expensive!
The AI calculates the 'Efficient Price' by analyzing spread volatility. It helps you avoid entering trades where the cost of the spread wipes out your potential profit.
To complete this lesson, head over to the Analyzer and find a stock showing a strong "Smart Floor" or AI-detected pattern. Verify the technicals before marking this lesson as finished.