Here's a thing I find it hard to understand, maybe some of you bright sparks can help.

Niallaght

Newbie
What happened today to cause this, and how do the indices on 3 different continents all react to the thing at the v same time by the same amount. It;s just puzzling me. See the bullish candle near the end, market made a huge jump around 11am, GMT+1, so fair enough, chart is ftse, or uk100. But how does the same also jump also appear in the ASX which is asia, another continent at exactly the time, and also the nasdaq in new york?

Surely if it was down to some kind of news report or event, these 3 places would hear about it at different times, they might all respond the same but they'd not all be in sync, or am I wrong? There's got to be some reason for this.

Thanks in advance and I look 4ward to hearing any thoughts on this, I'm Niall btw and just joined.

Screenshot (996).png
 

BigDeal

Active member
Wow no, news in the financial markets travels in milliseconds and gets picked up by the big traders to enable them to move much, much quicker than you or I ever could. Which is why we always trade in their shadows I'm afraid.
You can subscribe to a real time squawk box service if you wanna try to get somewhere near real time triggers, but they are expensive and I still do not believe an individual can react quick enough to make it worthwhile
 

ffsear

Senior member
It was news... below headline

BANK OF ENGLAND: BANK WILL CARRY OUT TEMPORARY PURCHASES OF LONG-DATED UK GOVERNMENT BONDS FROM 28TH SEPTEMBER.
 

tomorton

Legendary member
Most of us private retail traders are trading through brokers who offer a market specifically to their clients in the underlying instrument. Its like they are offering in European business hours a market for us to speculate on the price of bread in Tokyo. Obviously, at that time, nobody in Tokyo is buying bread, they're all asleep, and our trades do not impact on the bread shops as firstly, we are too small to make an impact but in any case we are not buying actual bread, so the supply of bread is unaffected by our trades.

This means that the only meaningful gaps in trading indices and forex is across the weekend from the US close on Friday until the Asian / Australasian opens on Monday. The markets in individual shares do gap overnight however (overnight for the location where they are registered on their stock market). This means that strategies relying on gaps seen in charts don't work really well for indices and forex.
 
 
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