Trading questions/strategies thread

I'll start.
Why does the green candle in pic related not start at the blue line where the previous red candle ended?

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>deciphering candle magic
Surely the way to trade.

CZ manually adjusted the price in between candles from his OTC trading desk

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Brainlet

Since it's a green candle, the top of the line represents the highest buy price, the top of the block represents the closing price of the previous candle. Same goes for the bottom of the line and block respectively. This is all inverted if the candle is red. Basically, since the closing price of the previous time period was higher than its opening price, the next candle is higher than the previous one, and is green as a result. If you want to practice this more in-depth I recommend looking at some basic forex pattern tutorials.

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Idiot that isn’t what he asked. The opening price of the green candle should be flush with the closing price of the red

youre making such a big mistake learning how to swing trade your first time on chainlink lol

I think the answer is because the price "gapped up" overnight or in the first instant of the trading day. America can open either lower or higher than it's previous close and this is called a "gap" up or down.

It happens several times in the chart.

- The third candle, the green candle starts higher than the previous red candle's close
- the third to the last candle, the red doji candle, starts quite a bit higher than the previous green candle's close
- the second to the last green candle, it starts quite a bit lower than the previous red candle's close

Unless these are 1D or 4H candles, I don't think these are gaps while the market is closed.

Most likely this is caused by the spread.
If this market is not very liquid, there may be a big gap between the highest bid and the lowest ask.

This can get even wider during high volatility periods of the said market, when a dump or a pump is occurring and wicks grow long and wide, the price quickly bouncing up and down.

You can see this in the third to the last candle. That red candle has huge wicks on both the upside and the downside. As such, it doesn't even start where the last candle ended, and neither does the next one.

I personally LOVE it when this happens. I put in several thousand dollars of buys with the top bid, several thousand dollars of sells at the top ask, and make hundreds of dollars within seconds. And it lasts for like 5-15 minutes. All you need to do is watch the order book and market history for signs of slowing down so you know when to get out.

>Blue line
Either you're color blind or I'm color blind