Hi All, Just wondering what this scenario means from microstructure point of view. if you connect prev bid( or ask) to current ask(or bid) is there any information that can be implied..
To add to the picture, you would need volume and volume pace. Together they would begin to form a 'sense' of who's dominant in offering vs taking liquidity. What your image implies are the oscillations between dominant and non-dominant traverses occurring within any two bar pattern. It also begins to show three types of turns that can readily be seen on a chart. There is a fourth type of turn which is much more subtle and requires more differentiation. The above description is a minority pov.
If this is all you've got, notice how the closes are rising for each bar. The long "wicks" below could be rejection. I'd call this slowly trending / grinding up. You might want to take upward accelerations as buy signals. The curves are maximum allowed bar-bar volatility/trade signals. Type of silent PA where I'd lean to anticipate an upward explosive move. Could be a completely different picture if you include more bars (background) and volume. Not sure what you really mean by "microstructure".
haha. So now you know when we do trading, we use very simple system. we don't use complex DNA type charting tool.