I’ve come across a problem in trying to understand Bid/Ask concepts in trading.
From my understanding Candlestick Charts show the Bid Price in terms of FOREX. I’m trying to understand if the chart is showing the Current Available Highest Bid Price (Highest Buy Limit Order) or the Last Traded Bid Price.
For example(I’ll use stocks as an example to make it simple), Imagine, there are:
2 Bids for Stock X at $100
and
2 Asks for Stock X at $101
None of the buyers or sellers are willing to budge. All of a sudden, 1 of the buyers gives up and puts in a market order to buy at the Ask of $101. Now we remain with only 1 Bid at $100 and 1 ask at $101 and no one budges anymore so no transactions are made anymore.
Would the candlestick chart remain at $100 since that’s the Current Available Highest Bid Price or would it have gone up to $101 and stayed there since that was the last traded price where the bid was $101.
Consequently. Would the Bid/Ask quote remain the same as before. I.e $100/$101?
Thank you.