Comment on Getting Started with Candlesticks

Raj commented on 11 Aug 2015, 11:40 AM

Hi –
Can you help me with this?
In a daily chart, 1 candle represents 1 day. Since the market closes at 03.30PM and only opens the next day at 09.00AM, there is a “closed/non-trading” time. Opening price does not have to be equal to previous day’s closing price.
But for an intraday chart where 1 candle represents a few mins (or an hour), there is no “closed/non-trading” time between successive candles. In that case open price of a candle should always be closed price of previous candle. There can be no “gapping”.

I know this idea is wrong, but I don’t know where I am going wrong. I therefore want to understand the construction of intraday candlestick charts. No patterns, signals etc. – just the construction.

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