I have developed a new type of chart. It shows the relative volume for
each price during an interval.
http://home.att.net/~geoffrey.slinke...olumeBars.html
I am a Data Visualization person, not a Technical Analyst. I strive to
find new ways of presenting more data that is relative.
In a bar or candlestick chart with the volume plotted below, you can
have some interesting interval data:
The Open, Close, High, and Low prices for the interval, and the total
volume for the interval.
Volume-Price charts add to the data previously mentioned. Added is the
volume for each price point in the interval.
Suppose during the inteval 10,000 shares were traded. The open was
12.00 and the close was 10.00. The high as 13.00 and the low was 10.00.
How many shares traded at the opening price? How many shares traded at
the lowest price? The Volume-Price chart shows this information!
Please share the idea. I am a computer scientist, not a trader or tech
analyst. I have no connections in the trading world. Please share the
idea with any and all. The paper is found at:
http://home.att.net/~geoffrey.slinke...olumeBars.html
I think it would be very interesting to take a historical candlestick
chart and identify some of the common patterns (morning star....) and
plot that same data with a Volume-Price chart. Then after identifying
the common candlestick patterns look and see if any of the patterns
failed to indicate correctly. If they failed to indicate correctly,
does the volume-price chart give indications as to why the prediction
was incorrect. Maybe there is an analyst that would like to work on
this!?!
Sincerely,
Geoff
