Who sets the exchange rates? and who makes the candlesticks?

IwillBeRich

Trader
Apr 4, 2024
2
0
6
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How exactly is the candle stick formed on the screen? Who decides the dollar is now weaker than the Euro and vice versa? IK data is inputted into the computers, then the computers interpret the data to form a candlestick but who sends that data into these computers? Is it the broker? After all we use their platforms and apps to see how the currencies fare against each other. Please I'd really like to know the whole history behind how the candle stick is formed. Not about understanding the candle stick(open, close, supply and demand, bullish and bearish, im focusing on just how the visual is formed)

Youtube videos or links are welcome
 
Normally, the candlesticks are formed based on the raw tick data that the broker receives from their liquidity provider. Some brokers have multiple liquidity providers, so they serve combined tick data to their trading software. Raw tick data usually consists of the Ask and Bid price at a given timestamp. If the data came from a centralized exchange, there can also be volume information (however, it isn't used in candlestick formation). Candlesticks are then built based on the Bid rates during the chart's set period.
 
Normally, the candlesticks are formed based on the raw tick data that the broker receives from their liquidity provider. Some brokers have multiple liquidity providers, so they serve combined tick data to their trading software. Raw tick data usually consists of the Ask and Bid price at a given timestamp. If the data came from a centralized exchange, there can also be volume information (however, it isn't used in candlestick formation). Candlesticks are then built based on the Bid rates during the chart's set period.
Is the raw tick data just a record of transactions? Tell me if this order is correct. (1)People swapping(buying and selling) currencies, (2)then someone records all this transactions which is the raw tick data,(3) the the broker takes this raw tick data and makes it more easier to read by forming candlesticks
 
Is the raw tick data just a record of transactions? Tell me if this order is correct. (1)People swapping(buying and selling) currencies, (2)then someone records all this transactions which is the raw tick data,(3) the the broker takes this raw tick data and makes it more easier to read by forming candlesticks
No, not the executed transactions, but rather limit orders that form the order book. So, the price where the next actual transaction can take place.