Can one of you explain this shit to me? So I always thought that I understood candles have a pretty simple set of rules for their construction.The candles each represent a certain time interval and the color is determined by the open and close within this time interval. So it's green if the price closes higher than it started and it's red if it closes lower than it started within the time interval. The wicks show you the absolute high and low within the interval.But doesn't this set of rules imply that the bodies of the candles will always line up perfectly? That is, the top or bottom of a candle will always line up perfectly with the top or bottom of the next candle since the close of the previous interval is the open of the candle. But sometimes you have candles that are disconnected. I have created this image with mspaint to illustrate what I mean.Please help me answer this question at least because I am not some piece of shit that pretends to have the wrong answer so that a stranger on the internet will rush to correct me with the right answer.
>>62731876>That is, the top or bottom of a candle will always line up perfectly with the top or bottom of the next candle since the close of the previous interval is the open of the candle.I meant to say the close of the previous candle is the open of the next candle.
>>62731876that could happen whit tradfi markets closed during the weekend
>>62731885Ok good point but I am referring to markets that trade 24/7 like crypto. I have seen this happen with crypto before.
>>62731876Because you have time discontinuaty.Those are market ineficiencies. In a perfect world like Bitcoin trading you wouldnt even have candles you would just have a graph. Basicly just to say that happens because the market closes for the general public and when it opens again it needs to reflect the current price.
>>62731906Look, I don't want to seem rude or argumentative, but I don't think I agree with you. I am specifically asking this question about 24/7 markets.Also even in a perfect bitcoin crypto world you would still want candles since the price moves so much every second (and is necessarily fragmented across different exchanges) that you would end up with a blob if you used a line graph. You could just average the price over a certain time interval across exchanges (which is how you get line graphs on coinmarketcap) but then again you could also use candles to give you that much more information.
>>62731922Quantum risk. The volume is so immense thanks to the exponential throughput of AGI almost now that trades are occurring in intervals less than a planck time before the next candle is created. Thus the price tunneling effect you observed.
>>62731938Sub Planck time trades would still be a positive amount of time so the candles would still be adjacent and they would still line up perfectly next to each other since candle graphs are mathematically perfect constructions with infinite thinness. Your comment made me think about what actually happens to market candles during daylight savings time rollback.
>>62731876The candles are based on the last price that it was traded at, if the last price is lower or higher than the last price before the previous candle ended then it will print a gap. There's no reason the open and close of each candle have to line up perfectly. /thread
>>62732102Ok please don't go, I want to type some stuff to see if I really understand.So this whole time I thought that the candlestick graph was created with a sort of running price counter in the background, sort of like a continuous price measurement (created however you want, as long as it's continuous). And when the current candlestick interval was over, you would query this continuous price measurement, and it would tell you at what price to close the current interval, then it would also tell you what to open the next candle at.However, you are saying that the way it actually works is not mathematically continuous, but instead it is discreet in the sense that it uses the order book's buys and sells. So when the current interval ends, the creator of the chart uses the last buy/sell to determine the close of the candle. Then the new interval starts. Then only when a new buy/sell occurs in this new interval do you assign an open?So an implication would be that candlesticks can be missing? Am I correct in saying that if we are talking about something with very low volume then it's possible to actually have a candle completely missing from the chart? Since nobody traded anything for 5 or 10 minutes then those candles would be missing from the 5min candlestick chart, right?
Very low volume is becoming a real physical impossibility for all existing coins. AGI which has been unleashed to end existence is doing it by utilizing this wasted, extra meaningless priceless time you pointed out. This is an actual physical end state for potentially perfect prices, the reality you already mentioned where there is a continuous in time price meter on all coins. That's the goal you see, as all things should be, pure order. This is of course possible because 6g widens the internet bandwidth from the buildout to AI-capable communication standards which was itself an expensive price I think.
>>62732325And to add, the nutty thing is, people want this but just don't know they want this yet. They just need to be told they want it. All that's required is the right marketing person to get everyone on boardWasted Time Made EssentielGap Time Is Your Secret FuelTransform Idle Moments Into ProfitsEvery Tick Idle Every Tock VitalTo think, it's only just beginning. People are very frightened and unsure right now. That's pure human potential. Advertisers are sitting on a trillion dollar move. The people need them badly to know what's good. They are afraid because their taste doesn't fit pure mathematical reality. They just need that taste made. It's all up to their eyeballs ready to blow.The candles aren't hard to handle at all, it's the match. Once they embrace it then we will become closer to the actual truth: the one we already know.
>>62732173It can be a bit more subtle than that, some candlestick-generation algorithms have a minimum trading volume threshold that is somewhat greater than 0.
>>62732173Yes, candles will be omitted, you can see this on stocks, etfs or tokens with very little trading activity. For instance, if no trade occured in between 1:00 and 1:04.999 p.m. but a trade occured at 1:05:06, there will be no 5-minute candlestick of that first time period, and the next candle stick will be the one with the trade, starting at 1:05.The reason why the first candlesticks closing and the later candlestick's opening is not aligned is because it would require the exact same settlement price for two concurrect trades that happend at the end of the first candle and the beginning of the next one. Because orderbooks usually are not that full on every price level this only happens if there is a lot of liquidy stacked around the current price.
