Open/ Close of candlesticks

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croftcs
Posts: 8
Joined: Wed Nov 09, 2022 3:07 pm

Open/ Close of candlesticks

Post by croftcs »

Hi.
I am just running the demo version to get a feel of the software.
I notice that the close of a previous candlestick does not line up with the open of the following candlestick.
In forex, as far as i am aware, there is no gap between the two.
It does not occur all the time but is very frequent.
Is this just with the demo?
Kind Regards
John
Admin
Site Admin
Posts: 189
Joined: Mon Feb 21, 2022 3:03 pm

Re: Open/ Close of candlesticks

Post by Admin »

Hi,
No, it's not related to demo version because gaps are a regular thing, even on Forex market.
Gaps occur when there is a liquidity decrease. It can happen during the week-end, when the markets are almost closed, during big news event, when the majority of people avoid to trade, or during special events (ie: flash crack). You will find gaps on exotic Forex pairs as well.

There are even trading strategies relying on profiting from the gaps .
So this is something common and depends on the brokers and their liquidity providers.
For example, you can check the Forex Monday, you're likely to find gaps on some pairs.
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