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Candlestick Charts, Should they have gaps in data?After I learnt how to read them, I quickly became a fan of candlestick charts. When I can set them to my preferred red and green, candlestick charts provide me with a very quick and easy way to read what is happening. While I've been evaluating metatrader 4 I've been experiencing something that I think is a bit odd. The bars on their candlestick charts don't always open at the same price that the previous one closed at. After doing some research I found that it's actually normal for one bar on a candle stick chart to not open at the previous bars closing price, they call it a gap... or if you talk to the Japanese who invented candlestick charting, they call it a window. From what I was able to find out online, the reason that a gap or window occurs is that trades have been made outside of trading hours eg. a publicly traded company releases information outside of trading hours, many investors might get this information and put in buy or sell orders which are to be executed first thing in the morning, this can cause the opening price to differ from the previous sessions closing price. How this happens in FOREX I do not know. I can understand if this happens when the market closes for the weekend, though when it happens mid week on hourly charts I can't understand the reason, I will do some more digging and see what I can find out.
Update: I've worked it out thanks to this thread. The way they are counting it is that the close of one bar is the last trade during that period. The opening price of the next period is the first trade of that period.
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