Markets are nervous. China is making the financial markets nervous. Stocks are falling everywhere. GBPNZD yesterday rose 1600 pips in just 1 minute and then it fell 1000 pips in the second minute. What was it? NZDUSD also fell 500 pips then rose 500 pips in a few minutes. Look at this 1 Minute chart below!
DO you see the very big bullish candle on M1 chart. Then there is a gap and price falls instantly the very next minute. Now look at this 5 minute chart below.
This is what the you see on the 5 minute chart.
Was it a flash crash? The rout on May 6, 2010, was dubbed the flash crash, and it was a shock. Out of nowhere, the stock market lost almost $1 trillion in value before almost immediately recovering most of its losses. While prices fell rapidly Monday, it appeared to be a fair reflection of investor sentiment: Indexes were falling worldwide, led by an 8.5 percent plunge by China’s Shanghai Composite Index, amid concern that the global economy is worsening. There’s also worry that the Federal Reserve will soon raise interest rates, which some think could snarl the six-year bull market for stocks. Reflecting that pessimism, the S&P 500 ended the day with its biggest loss since August 2011. The morning’s plunge wasn’t just a head fake.