Chartman
the gap(s) are a puzzle, especially as we see so many.
as a working hypthesis, I put it down to the weightings of the
majors which can swamp the index calculations.
so, theoretically and as an extreme example, a major sweep through the order book causing a 5p move in VOD would cause a gap in the index the instant the transaction(s) was effected.
from memory, FTSE is recalculated every 10 seconds (?), so
for this to coincide with the end of a 1 min bar or 5 min bar
would be nothing short miraculous!
so something else is going on as well.
It may often have something to do with the LSE data feeds.
any suggestions/thoughts would be welcome.
the gap(s) are a puzzle, especially as we see so many.
as a working hypthesis, I put it down to the weightings of the
majors which can swamp the index calculations.
so, theoretically and as an extreme example, a major sweep through the order book causing a 5p move in VOD would cause a gap in the index the instant the transaction(s) was effected.
from memory, FTSE is recalculated every 10 seconds (?), so
for this to coincide with the end of a 1 min bar or 5 min bar
would be nothing short miraculous!
so something else is going on as well.
It may often have something to do with the LSE data feeds.
any suggestions/thoughts would be welcome.
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My theory is there are plenty of gaps...there might be 1 every 10 second (update) or even looking closer every trade but unfortunately we dont get to see them charts wise and to see if they get filled. I guess you could look at a streaming quote. But why ther appear or not doesnt really matter in the end as I assume we TA traders are trading the effect not the cause?
barjon
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interesting, I've just been watching ftse changes over last 10 minutes - there's always an adjustment as the minute turns over
(and about every10 secs). one would have thought that the
close = open if the adjustment is smack on the minute??
perhaps someone, somewhere needs to synchronise watches!!!
(and about every10 secs). one would have thought that the
close = open if the adjustment is smack on the minute??
perhaps someone, somewhere needs to synchronise watches!!!
hadnt thought of it like that. If the price is calculated every 10 seconds surely there should never be a gap between open and close price in any two candles. Becauase at that time there is only one price. Surely the cant be taking e 2 prices, one for closing and one for open as the open price would still be the same as the closing price?????? the only way I can see it happening is if the feed is shorter than 10 seconds but charting packages only take 10 second ticks thus the close would be on 10 secs and the open on eg 10.001 seconds. Thus you can account for a gap between the two. mmmmmmmm?
lol
I guess we have to conclude that the only gaps on an intraday basis are ones between ticks and thus visual gaps on a canlde stick chart are nothing more than mis calculation.
However, the miscalculation shown in gaps in candle open-close might actually be a early indicator as one would usually have
to wait until end of 10 secs to update the price. So all is not lost
I guess we have to conclude that the only gaps on an intraday basis are ones between ticks and thus visual gaps on a canlde stick chart are nothing more than mis calculation.
However, the miscalculation shown in gaps in candle open-close might actually be a early indicator as one would usually have
to wait until end of 10 secs to update the price. So all is not lost
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I know you use 2 min dots, which I guess help filter out some of the noise., but have you or do you know if anyone one has ever done say 2 point dots. i.e chart the price every time the price hits 2 points from the previous plot? I assume it would be very similar to PF but would look different? What do you think, might show trends clearly?
barjon
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hooya
while you're at it have a look at Kagi charts and Three-Line Break
charts - they're similar to Renko.
Three - Line Break has such gems as "buy when the neck
emerges from the white suit with the black shoes" if you like a
bit of glamour in your analysis!!!
good trading
jon
while you're at it have a look at Kagi charts and Three-Line Break
charts - they're similar to Renko.
Three - Line Break has such gems as "buy when the neck
emerges from the white suit with the black shoes" if you like a
bit of glamour in your analysis!!!
good trading
jon
