Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Do Or Die

Data Visualization

Recommended Posts

Hi,

 

Technical Analysis can help only if you can identify patterns which are non-random. So the important part is identifying profitable patterns- either through graphs or through machine learning. Lets talk about discovering patterns through data visualization (using graphs).

 

To clarify: I'm using the word 'pattern' in a broad sense and not just the classic chart patterns. Trend itself is a pattern- the way you define a trend should suggest that prices has a high probability to continue in the direction of the trend; if they don't then trend does not exists. Similarly how a trend first starts, establishes and gets exhausted is all about patterns in price behavior.

 

So let's revise pros and cons of some available charts. Please help building a proper list by mentioning why you use a particular plot style. I will mention some not-so-popular plot styles tomorrow.

 

Line Chart

Pros: Filters out daily/minute ranges by plotting only close value. Some people find this helpful.

Cons: People who seek more details would go for O/H/L/C charts

Bar Chart

Pros: Plots the O/H/L/C values for each day, as well as the price ranges over a quarter or year depending on the number of bars you plot.

Cons: Single color; color are more catchy to eyes than just data points

Candle Stick Chart

Pros: The most popular- plots daily ranges in a way that it is easy to identify each bar pattern, also uses different colors for easier visualization

Cons: None really, depends on how comfortable a trader is with this plot style

 

Range Bar Chart

Pros: Plots each bar according to a preset range and hence filters out time details

Cons: Absence of relevant information- internals retracements within the bar range are chalked out.

Rules for plotting:

  1. Each bar is the same height because the range is constant.
  2. The close of a bar is always at the high or low of the bar.
  3. The open of a bar is always one tick below or above the close of the preceding bar.
  4. The time period covered by each bar varies.
  5. All gaps are filled with inserted 'phantom' bars.

 

Equivolume Bar Chart

Pros: Plots the bar size in proportion to volumes- hence more information in the same plot

Cons: None really, depends on how comfortable a trader is with this plot style

Heikin-Ashi Chart

These are not really price charts but may come under the category of price derived indicator. Each bar is calculated with formula (below) to emphasize existence of trends

  • Open = (open of previous bar+close of previous bar)/2
  • Close = (open+high+low+close)/4
  • High = maximum of high, open, or close (whichever is highest)
  • Low = minimum of low, open, or close (whichever is lowest)

 

Renko Charts

These have predetermined range bars (bricks) similar to range bar charts.

Pros: does not have intra-bar hi/lo like range bar charts

Cons: internals retracements within the brick range are chalked out.

 

Kagi Charts

These are another form of time-independent charts. The thickness of the Kagi line changes depending on price action. The Kagi line is plotted up (or down) until prices reverse by a specified amount. These are not just price plots- can be categorized under derivatives.

Point and Figure Charts

Another price derived chart which follows the following rules:

  • Use the high when another X can be drawn and then ignore the low.
  • Use the low when another X cannot be drawn and the low triggers a 3-box reversal.
  • Ignore both when the high does not warrant another X and the low does not trigger a 3-box reversal.
  • Use the low when another O can be drawn and then ignore the high.
  • Use the high when another O cannot be drawn and the high triggers a 3-box reversal.
  • Ignore both when the low does not warrant another O and the high does not trigger a 3-box reversal.

Edited by Do Or Die

Share this post


Link to post
Share on other sites

Technical Analysis can help only if you can identify patterns which are non-random.

 

Yes, this is the ultimate goal. Starting out, I focused on price patterns only. I now compare the price pattern to other non-price indicators. I think it's important to compare price to some other non-price pattern.

Share this post


Link to post
Share on other sites

Please give your reasons why you prefer certain type of graphs.

 

Market Profile Charts:

These supposedly give better visuals for PV analysis by plotting volume along with price levels.

 

Each of attached charts are different, click to enlarge.

5aa7109eb08c0_1vp.thumb.jpg.77720f5bddf612f24ec02cebb34c312f.jpg

5aa7109eb863f_2vp.gif.70ce429eab137131617446e8da5db7cb.gif

5aa7109ebee26_3vp.jpg.921f1ca36c5054a5d59a3887520b3468.jpg

5aa7109ec79ef_4vp.thumb.jpg.5d0384292583ac71213f486c189d7418.jpg

5aa7109ecc439_5vp.gif.0ddf445c7dfa73fcf595b53b0d376b34.gif

Share this post


Link to post
Share on other sites

Market Overview Charts:

 

These can be very helpful for stock traders.

 

Heatmaps are the simplest and can be drawn easily in Excel 2007.

attachment.php?attachmentid=25952&stc=1&d=1314719695

Treemaps are a improved version of heatmaps where components are weighted as per their importance.

attachment.php?attachmentid=25954&stc=1&d=1314719695

Relative Performance charts are my favorite.

attachment.php?attachmentid=25953&stc=1&d=1314719695

Even more customization can be used for technical information.

attachment.php?attachmentid=25955&stc=1&d=1314719695

attachment.php?attachmentid=25956&stc=1&d=1314719877

5aa7109ee4099_1hm.png.d5bfa5a041bfae74b735f3bfec2ce5b5.png

5aa7109eea871_1rs.png.21752df82b774ef94bf8a014696fdcf0.png

1.png.7099361ecdf2ea024a199593ed7f7430.png

sauplo3_11.thumb.png.56c6a9ac8721a2cd4cf1ce9672c0dd39.png

12.png.3116423b610653a336fb41fe988bba57.png

Share this post


Link to post
Share on other sites

Similar to time independent charts like Range Bars, Kagi, Renko and PnF charts; Wilder (the author of RSI indicator) developed Accumulation Swing Index (ASI). People may find it a slight improvement over line charts. The methodology for ASI:

 

SI(i) = 50*(CLOSE(i-1) - CLOSE(i) + 0.5*(CLOSE(i-1) - OPEN(i-1)) + 0.25*(CLOSE(i) - OPEN(i)) / R)*(K / T)

 

ASI(i) = SI(i-1) + SI(i)

 

Where:

SI (i) — current value of Swing Index technical indicator;

SI (i - 1) — stands for the value of Swing Index on the previous bar;

CLOSE (i) — current close price;

CLOSE (i - 1) — previous close price;

OPEN (i) — current open price;

OPEN (i - 1) — previous open price;

R — the parameter we get from a complicated formula based on the ratio between current close price and previous maximum and minimum;

K — the greatest of two values: (HIGH (i - 1) - CLOSE (i)) and (LOW (i - 1) - CLOSE (i));

T — the maximum price changing during trade session;

ASI (i) — the current value of Accumulation Swing Index.

 

attachment.php?attachmentid=26017&stc=1&d=1315143227

ASI.thumb.png.f9f339ad390914ce6adb4d24ba5d90b7.png

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • AMZN Amazon stock, nice buying at the 187.26 triple+ support area at https://stockconsultant.com/?AMZN
    • DELL Dell Technologies stock, good day moving higher off the 90.99 double support area, from Stocks to Watch at https://stockconsultant.com/?DELL
    • MCK Mckesson stock, nice trend and continuation breakout at https://stockconsultant.com/?MCK
    • lmfx just officially launched their own LMGX token, Im planning to grab a couple of hundred and maybe have the option to stake them. 
    • Date: 2nd April 2025.   Market on Edge: Tariff Announcement and Volatility Ahead!   The US economic and employment data continues to deteriorate with the job vacancies figures dropping to a 5-month low. In addition to this, the IMS Manufacturing PMI also fell below expectations. However, both the US Dollar and Gold declined simultaneously following the release of the two figures, an uncommon occurrence in the market. Traders expect a key factor to be today’s ‘liberation day’ where the US will impose tariffs on imports. USDJPY - Traders Await Tariff Confirmation! Traders looking to determine how the USDJPY will look today will find it difficult to determine until the US confirms its tariff plan. Today is the day when Trump previously stated he would finalize and announce his tariff plan. The administration has not yet released the policy, but investors expect it to be the most expansionary in a century. President Trump is due to speak at 20:00 GMT. On HFM's Calendar the speech is stated as "US Liberation Day Tariff Announcement". Currently, analysts are expecting Trump’s Tariff Plan to impose tariffs on the EU, chips and pharmaceuticals later today as well as reciprocal tariffs. Economists have a good idea of how these tariffs may take effect, but reciprocal tariffs are still unspecified. In addition to this, 25% tariffs on the car industry will start tomorrow. The tariffs on the foreign cars industry are a factor which will particularly impact Japan. Although, traders should note that this is what is expected and is not yet finalised. Last week, President Trump stated that he would implement retaliatory tariffs but allow exemptions for certain US trade partners. Treasury Secretary Mr Bessent and National Economic Council Director Mr Hassett suggested that the restrictions would primarily target 15 countries responsible for the bulk of the US trade deficit. However, yesterday, Trump contradicted these statements, asserting that additional duties would be imposed on any country that has implemented similar measures against US products. The day’s volatility will depend on which route the US administration takes. The harshness of the policy will influence both the Japanese Yen as well as the US Dollar.   USDJPY 5-Minute Chart   US Economic and Employment Data The JOLT Job Vacancies figure fell below expectations and is lower than the previous month’s figure. The JOLT Job Vacancies read 7.57 million whereas the average of the past 6 months is 7.78 million. The ISM Manufacturing Index also fell below the key level of 50.00 and was 5 points lower than what analysts were expecting. The data is negative for the US Dollar, particularly as the latest release applies more pressure on the Federal Reserve to cut interest rates. However, this is unlikely to happen if the trade policy ignites higher and stickier inflation. In the Bank of Japan’s Governor's latest speech, Mr Ueda said that the tariffs are likely to trigger higher inflation. USDJPY Technical Analysis Currently, the Japanese Yen Index is the worst performing of the day while the US Dollar Index is more or less unchanged. However, this is something traders will continue to monitor as the EU session starts. In the 2-hour timeframe, the USDJPY is trading at the neutral level below the 75-bar EMA and 100-bar SMA. The RSI and MACD is also at the neutral level meaning traders should be open to price movements in either direction. On the smaller timeframes, such as the 5-minute timeframe, there is a slight bias towards a bullish outcome. However, this is only likely if the latest bearish swing does not drop below the 200-Bar SMA.     The key resistant level can be seen at 150.262 and the support level at 149.115. Breakout levels are at 149.988 and 149.674. Key Takeaway Points: Job vacancies hit a five-month low, and the ISM Manufacturing PMI missed expectations, adding pressure on the Federal Reserve regarding interest rate decisions. Traders await confirmation on Trump’s tariff policy, which is expected to impact the EU, chips, pharmaceuticals, and foreign car industries. The severity of the tariffs will influence both the JPY and the USD, with traders waiting for final policy details. The Japanese Yen Index is the worst index of the day while the US Dollar Index is unchanged. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.