Im new to forex trading. By trade Im a developer by trade, and I find this topic interesting and I want to get into it.
I have been trying to understand how BID/ASK prices link up with OPEN/CLOSE prices on candle sticks.
I understand that the spread is basically what the broker is basically making on executing a buy sell and if the number of trades for a currency pair stays constant, the difference between these two would also stay constant.
So lets say my forex stream is being refreshed every minute. The data I get is the BID, the ASK the HIGH and the LOW.
What I want to know is from this how do I draw my candle stick. I need an open and a close? I was thinking that if I plotted say the BID price, one close is the same as the next candlesticks open but I know this is not necessarily the case. That would also mean I cant draw a candlestick until the next data point came in each time.
Is this how you guys do it? Whats the deal with this? It seems some streams give open and close and some give bid and ask…