Candlestick i can't understand
Please see the attached screenshot of my GBP/JPY chart this evening.
I cannot work this out on my own, can someone please explain to me how that candle was formed and how the next candle can open and close the way it did? it defies all laws of open and close of my candlestick knowledge.
I'm new so please take it easy :)
It might seem like the new candle should open where the last one closed, but in real markets, that doesn’t always happen. Prices can gap up or down, especially after major news or over the weekend. So it’s normal if the open and close don’t line up exactly. You’ll see this a lot and often the reasons come from economic events or news releases, so keeping an eye on those helps make sense of it.
Janice__ posted:It might seem like the new candle should open where the last one closed, but in real markets, that doesn’t always happen. Prices can gap up or down, especially after major news or over the weekend. So it’s normal if the open and close don’t line up exactly. You’ll see this a lot and often the reasons come from economic events or news releases, so keeping an eye on those helps make sense of it.
Thank You
Hi Sharpkami, I am also new, but I think I could give you a hint according to my experience:Now, as others have said, it may be news, but there are some key points you should know:1- There are no market gaps that are not fulfilled. I am not sure if all, but the fact that I know that the market always fulfils the market price by orders.2- As it shown to me it followed the structure, if you see the green candle close ( green candles opens at down and close up high) the followed candle opened at a high level (that means that it didn't open at the same price level there was a gap) then as you can see there is a Upper Wick for the candle, it may mean when the market was building up the candle, it was a green and then it also created a higher price level then it go back too fulfil the gap, also it closed under the previous candle price level a well.
Feel free to call me if you need any more explanation😀
Also, I forgot to tell you that this is an engulfing candle pattern, the red candle captured the whole previous candle..
