I was hoping that someone could explain these gaps in the market, on the 1-minute chart. Are these price corrections for matching with real-market valuations, or something else?
Thanks.
It would be interesting to understand the answer to this.
But please tell me you’re just curious. Surely you’re not trading on the 1-minute charts?
I notice that this is a relatively old thread but the forums recommended it while I was browsing for something else (as is there want).
Anyway.
Some brokers only start painting a new bar on their charts when there is a tick. So let’s assume that there is no price movement in the very last few seconds of a 1-minute bar and then the next (new) 1-minute bar opens. The new 1-minute bar does not start getting painted until there is a new tick and if the price of that new tick is higher or lower than the close of the previous bar then it will cause a “gap” i.e. the opening price of the new 1-minute bar will be at the price of the new and first tick for this new bar. At brokers that don’t work like this: they simply open the new 1-minute bar at the close of the previous 1-minute bar so you don’t see the “gap”.
It’s not limited to 1-minute bars by the way.
And it’s not tradeable either so don’t get any ideas!!! LOL!!! It’s not a proper gap and is solely dependent on the method used for drawing bars at that particular broker on their particular charting platform.
But (there’s always a but isn’t there): if you’re sure that your broker doesn’t draw charts on the basis that I’ve described above then you could be looking at missing data or bad data feeds. This should be of concern (the above not).
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