Hi all,
Please forgive the newbie question...
I've been learning about candles. When I look at some intraday charts, I wonder why sometimes the bodies of the successive candles don't overlap (please see attached illustration).
My assumption is that in a fairly liquid security, prices should pretty much change in sequence, like 10.00, 10.05, 10.10, 10.07, 10.02. The way some candlesticks look it seems like there is a gap in price.
For example, candle one opens at 10.00, has a range from 9.75 to 10.20, and closes at 10.15. Then the next candle, logically, should open at 10.15, or at least within a few very small points of it, no? Yet I often see that sometimes the next candle may open at like 9.50, or 10.50, in other words there seems like a very rapid jump in price.
I gather the candlesticks are not omitting any information if this is an intraday chart (i.e. 5 minute chart).
Thank you in advance for your explanations!
Please forgive the newbie question...
I've been learning about candles. When I look at some intraday charts, I wonder why sometimes the bodies of the successive candles don't overlap (please see attached illustration).
My assumption is that in a fairly liquid security, prices should pretty much change in sequence, like 10.00, 10.05, 10.10, 10.07, 10.02. The way some candlesticks look it seems like there is a gap in price.
For example, candle one opens at 10.00, has a range from 9.75 to 10.20, and closes at 10.15. Then the next candle, logically, should open at 10.15, or at least within a few very small points of it, no? Yet I often see that sometimes the next candle may open at like 9.50, or 10.50, in other words there seems like a very rapid jump in price.
I gather the candlesticks are not omitting any information if this is an intraday chart (i.e. 5 minute chart).
Thank you in advance for your explanations!
)) didnt think about guys trading unliquid instruments intraday...