Guys, let’s talk about “there’s no guarantee trades will occur at every price between two price levels,” using this data from $TRX as a reference.
Binance Spot, 11/08 17:00–18:00 (Beijing time): down 0.09% over the hour, with a trading volume of 314,600 USDT, 1.13 times that of the previous hour. The closing price for the period was 0.3204 USDT.
Market prices are formed by actual order matching, and visible price levels and quantities are constantly changing. During rapid movements, consecutive trades may skip over certain prices. Connecting the points on a chart doesn’t mean trades could have occurred at every price in between. Imagining real execution as a continuous price curve can make it easy to overlook the constraints of the order book and the sequence of events over time.
When discussing whether “the price passed through a certain level,” first distinguish between chart lines, quotes that appeared, and actual trades, then consider the time granularity involved.
#TRX #CryptoChatter
Binance Spot, 11/08 17:00–18:00 (Beijing time): down 0.09% over the hour, with a trading volume of 314,600 USDT, 1.13 times that of the previous hour. The closing price for the period was 0.3204 USDT.
Market prices are formed by actual order matching, and visible price levels and quantities are constantly changing. During rapid movements, consecutive trades may skip over certain prices. Connecting the points on a chart doesn’t mean trades could have occurred at every price in between. Imagining real execution as a continuous price curve can make it easy to overlook the constraints of the order book and the sequence of events over time.
When discussing whether “the price passed through a certain level,” first distinguish between chart lines, quotes that appeared, and actual trades, then consider the time granularity involved.
#TRX #CryptoChatter