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I grabbed this screenshot from TradingView on the AUDUSD chart from CityIndex at just a few seconds after the 06:45 candle opened:

enter image description here

Why is the candle so large?

I am expecting that when a new candle forms it will initially be very small and grow as time passes.

This candle immediately appeared with nearly 5 pips of range already printed.

I am viewing this on a demo account in the BST timezone (GMT+1).

I want to see the candle form from the start because I have an indicator which alerts me on certain conditions at the close of the previous 5m candle. The problem is that I'm coming to the chart (within seconds) and I'm seeing fairly large moves (the candle above is quite a small example) before I even get there.

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A 5 bps drop from a single trade is not unknown so these candlesticks could represent three trades:

  1. the traded price at the start of the candlestick
  2. a trade with a 6 bps fall to the low point of the candlestick
  3. a trade priced at a price 1 bps higher than the previous at the bottom of the bar

Larger moves like this are especially likely if there was lower than usual liquidity or a larger than usual trade in the market. In particular there is no reason why a candlestick should grow in 1 bps increments as you seem to be expecting - a trade can occur at any price where the quantity can be filled not necessarily +/- 1 bps on the last trade. That said FX is usually liquid enough for moves to be around 1 bps.

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  • I'm not asking "why did the candle grow in such increments", I am asking "why did the candle appear in such a fully formed state at the start of its period?" I mean, it literally appeared on the chart with a full body and decent wick. How is that possible?
    – Matt W
    Sep 16, 2022 at 19:39
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    @MattW, apologies for the delay in responding but I'm in the UK and things have happened as I'm sure you know. In the FX market three trades can happen in milliseconds if not nanoseconds thanks to the international nature of the market. I suspect that even if your view refreshed that frequently you would be hard-pressed to spot the difference.
    – MD-Tech
    Sep 20, 2022 at 7:13
  • Yes, I am, too. See my answer for why the chart appears different from my expectation. Truly can't believe I forgot that.
    – Matt W
    Sep 20, 2022 at 14:59
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I can't believe I forgot this, but the reason the candles appear this way is because it is in Heikin Ashi mode.

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  • While this is actually the answer to my question, I'm accepting @md-ech's answer because that's where the points belong.
    – Matt W
    Sep 20, 2022 at 15:00

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