Why close price in previous minute does not equal price on the next minutes

Gendo90 / Crypto-Historical-Prices

An ETL project that compiles historical cryptocurrency prices from online sources into one SQL database

MIT License

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Why close price in previous minute does not equal price on the next minutes #2

Open khoinp1012 opened 1 month ago

khoinp1012 commented 1 month ago

Hello, From your data, I understand:

Open is price in the first second of minutes (like 1:00 or 1:01)
High and low is the highest and lowest price in whole minutes (from 0:00 to 0:59)
But the close price should be equal to the open price of next minutes. If they dont, they should very near (just 1 second different)
But from your dataset, the difference between close price of previous minute to open price of next minute is very big.
Do I missing something ? Do I interpreter Open, Min, Max, Close wrongly ?

Gendo90 commented 1 month ago

Could you give an example where this price difference is very large? It seems like it is similar for most of the data - and in the past, especially with stock/Wall Street trading, different trading algorithms can cause large amounts of automatic trades to trigger given certain conditions, with transaction speed a priority because fractions of a second can make profits significantly more or even prevent a loss (when competing against other automated trading algorithms). That is why you sometimes see "flash crashes" and there are proposals to lay upgraded fiber-optic cables across the Atlantic to reduce the internet latency between NYC and Europe!

Gendo90 commented 1 month ago

Also, some of the data was sourced from Kaggle for the earlier dates - so I did not collect that data here and just used it as a foundation for the dataset, because I believe the Coinbase APIs only provide data for crypto prices a few years back, not more, and I did not want to reinvent the wheel!

https://github.com/Gendo90/Crypto-Historical-Prices?tab=readme-ov-file#extract-data