This is really strange, I have no news flagging on my chart yet there have been three huge candles within 10 minutes of each other. What confuses me even more is that they are moving in different directions. By the way this is a M1 chart on EUR/USD.
Can anyone offer an explanation?
Firstly, since you didn’t included the scale on the chart, we can’t really tell how “big” those moves really are. Second, trying to read anything meaningful into 1 minute charts is largely an exercise in futility. One big order can move them around with no lasting impact.
Sorry, the distance between the two horizontal dotted lines is 20 pips (between 1.3600 and 1.3620), so the moves were about 20 to 30 pips within a 1 minute candle. They were not totally massive moves, but they where out of character for the recent price action.
I beg to disagree about not being able to read M1, but even so I’ve not seen anything like that before appart from around the news. Hence why I am curious. Two big orders in opposite directions within 10 minutes of each other, seems rather unlikely?
I think that the market is so volative at the moment, particularly for the Euro, that at any moment any small think could cause a hiccup. I agree that there was no particular news scheduled around then, but it was around lunchtime, UK time (1245, I think?) and if you scroll back through the charts (I did, I know, I’m a sad trader) then there are often a few longer bars around that time as the volume switches with the Brits drifting off to lunch and the Americans powering up for the day. I don’t trade the 1 minute at all, for the reasons Rhodytrader alluded to, I don’t even look at it, but I would not read anything into this. Perhaps one big banker placed one big order, then they cancelled it? It was not a big move, could have been anything, but as retail traders I think we need to tune that level of noise out in the current climate or we will go mad and get trader paralysis!
ST
I agree with ST on the current volatility and to be honest, it brings even more erratic behaviour on lower timeframes especially 1M. Look at 1H and it removes some of the noise…
Glad to hear you say that - some of the traders I speak with struggle to admit that they are finding it volatile at the moment. I don’t mind admitting that this October is giving me a tougher market than last October! Would love it to clear up soon, though… I do hope that this is not the new norm!!
ST
I can’t explain the first (or second!) big candle but the volatility may be an effect of the first.
A useful tip I learned whilst researching last few months is that abnormal candles usually get retraced to the mid-line of the abnormal candle. That happened here.
Actually, let the guy say it himself. Dodgy sound, perplexing graphics, sort of rambles on until you tune in… and stuff he says is genius. 1.30 min in. Georgetrio is a trader’s cult hero.
It was generally very whippy today in general. Most likely banks trying to fake people out since they didn’t want to do any big moves today.