Enhanced Candlestick Charting with Variable Wick Positioning
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Solution Overview
Problem
Conventional charting methods fail to provide specific information on when high and low prices occurred during a time period, leading to inaccurate and visually misleading representations of price fluctuations in candlestick and OHLC charts.
Innovation Solution
The method involves generating enhanced candlesticks and OHLC/HLC bar charts with separate upper and lower price bars that widen proportionally to the time period, allowing for the visualization of when high and low prices occurred by tilting or shifting wicks, and using a charting engine to display these symbols with variable widths and additional indicators for better accuracy.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If conventional candlestick and OHLC charts are used to display price movements, then the basic price range (high-low) is shown, but specific information on when high and low prices occurred during the time period is lost
Solution Approach 1:
The patent segments the traditional single candlestick body into multiple components: an upper wick representing the high price period and a lower wick representing the low price period. Each wick is positioned at different horizontal locations to indicate the timing of high and low prices within the time period, thereby preserving timing information while maintaining a relatively simple visual structure.
Solution Approach 2:
The patent introduces a horizontal dimension to the traditional vertical price axis by positioning wicks at different horizontal locations. This allows the chart to encode timing information (when high/low prices occurred) in the horizontal direction while maintaining price level information in the vertical direction, effectively adding a temporal dimension to the price representation.
2Measurement precision
If variable width symbols are used to indicate timing of high and low prices, then timing information is preserved, but computing resources increase due to rendering complexity
Solution Approach 1:
The patent applies local quality by making only specific parts of the chart (the wicks) have variable properties (horizontal positioning) while keeping the main candlestick body structure relatively simple and uniform. This localized complexity reduces the overall rendering burden compared to making the entire symbol variable in complexity.
3Ease of manufacture
If traditional OHLC bars are used, then the chart is simple to render, but the representation is visually misleading and does not show when price extremes occurred
Solution Approach 1:
The patent introduces asymmetry by positioning the upper and lower wicks at different horizontal locations relative to the candlestick body. This asymmetric positioning encodes timing information about when high and low prices occurred, making the representation more accurate while maintaining a structure that is still relatively simple to render compared to fully complex variable-width symbols.
Data Source
AI summary
A method of displaying a symbol representative of changes in price during a time period, the method includes receiving, for each intra-time period of a plurality of intra-time periods in the time period, intra-time price data including an intra-time open price and an intra-time close price corresponding to the intra-time period, determining, from the received intra-time price data for the plurality of intra-time periods, an open price, which is an intra-time open price of an initial intra-time period of the plurality of intra-time periods, determining a total-above-open-price counter value by determining, for each particular intra-time period of the plurality of intra-time periods, whether the intra-time close price of the particular intra-time period was greater than the open price, so that the total-above-open-price counter value indicates a number of the intra-time periods for which the intra-time close price was greater than the open price, and generating and displaying, the symbol, which illustrates a relationship between the total-above-open-price counter value and the plurality of intra-time periods in the time period.