Enhanced Candlestick Chart Timing Display
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Solution Overview
Problem
Conventional charting methods, such as OHLC and candlestick charts, do not provide specific information on when the high and low prices occurred during a time period, leading to inaccurate and incomplete visual representation of price movements.
Innovation Solution
The proposed solution involves generating enhanced candlestick charts where the body of the candle widens proportionally to the percentage of the time period traversed, and separate upper and lower price bars are used to indicate the high and low prices, along with tilting or shifting wicks to depict the timing of these prices without additional graphical indicators.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If conventional OHLC or candlestick charts are used to display price ranges, then the basic price movement information is shown, but the timing of high and low prices within the time period is not provided
Solution Approach 1:
The candlestick is segmented into multiple components: the body (showing open-close range), upper wick (showing high price), and lower wick (showing low price). Each segment provides specific timing information about price movements within the time period, allowing users to understand when high and low prices occurred without adding separate graphical indicators.
Solution Approach 2:
The patent extends the traditional two-dimensional candlestick representation by incorporating temporal dimension into the visual structure. The positioning of wicks relative to the body and their lengths encode timing information, transforming the static price range display into a dynamic temporal representation that shows when prices reached their extremes during the period.
2Loss of information
If additional graphical indicators are added to show timing of high and low prices, then more information is provided, but the chart becomes more complex and harder to interpret
Solution Approach 1:
The patent merges the timing information directly into the existing candlestick structure by using the wicks' position and length to encode temporal data. Instead of adding separate indicators, the timing information is combined with the price range representation, allowing users to interpret both price levels and timing from the same visual elements without cognitive overload.
Solution Approach 2:
Different parts of the candlestick serve different functions: the body shows open-close movement, the upper wick shows high price timing and level, and the lower wick shows low price timing and level. This local differentiation allows each component to convey specific information efficiently, making the overall chart easier to interpret despite containing multiple data dimensions.
3Loss of information
If the candlestick body width is kept fixed, then the chart maintains consistent visual scale, but the timing information within the time period is lost
Solution Approach 1:
The candlestick body width is made dynamic rather than fixed. The body expands or contracts based on the proportion of the time period traversed, allowing the visual representation to adapt to different price movement patterns. This dynamic shaping preserves timing information by reflecting the temporal distribution of price movements within each candlestick's geometry.
Solution Approach 2:
The patent introduces asymmetry in the candlestick body shape when price movements are uneven within the time period. The body may be wider on one side or have irregular contours that reflect the temporal distribution of high and low prices, providing visual cues about when extreme prices occurred without requiring additional graphical elements.
Data Source
AI summary
A method of displaying a plurality of OHLC type symbols, each symbol having a time period of equal duration representative of changes in price, the method includes generating and displaying, by a charting engine, a first portion of the OHLC type symbols, in accordance with a first selected symbol rendering method, and generating and displaying, by the charting engine, a second portion of the OHLC type symbols, in accordance with a second selected symbol rendering method.