Candlestick Chart Timing Visualization via Segmented Body
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Solution Overview
Problem
Current charting systems for market traded securities, such as OHLC and candlestick charts, lack the ability to provide specific information on when high and low prices occurred during a time period, relying on static graphical representations that do not accurately depict the progression of time.
Innovation Solution
The system generates enhanced candlestick and OHLC charts by widening the body of candlesticks and separating high and low price bars, allowing for proportional representation of time, and tilting or shifting graphical elements to indicate when high or low prices occurred, without adding additional visual indicators.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If conventional OHLC and candlestick charts are used, then the chart structure remains simple and easy to understand, but the chart cannot show when high and low prices occurred during the time period
Solution Approach 1:
The patent segments the single candlestick body into multiple components: an upper rectangle representing the time period when the high price occurred, and a lower rectangle representing the time period when the low price occurred. This segmentation allows timing information to be visualized without adding separate indicators, resolving the contradiction by embedding temporal data within the existing chart structure.
Solution Approach 2:
The patent utilizes the vertical dimension of the candlestick body to encode temporal information. By making the height of each rectangle proportional to the time period when extreme prices occurred, the chart transitions from displaying only price magnitude to simultaneously displaying timing information, thus resolving the information loss without increasing horizontal complexity.
2Measurement precision
If static graphical representations are used, then the chart is easy to render and display, but the chart does not accurately depict the progression of time
Solution Approach 1:
The patent applies local quality by making different parts of the candlestick body have different heights proportional to their respective time periods. The upper rectangle's height corresponds to the time from period start to high price occurrence, while the lower rectangle's height corresponds to the time from low price occurrence to period end. This local differentiation accurately depicts time progression without requiring a completely new chart type.
3Loss of information
If additional visual indicators are added to show timing information, then timing information becomes visible, but the chart becomes more complex and cluttered
Solution Approach 1:
The patent makes the candlestick body multi-functional by having it simultaneously represent price magnitude (through vertical position) and timing information (through rectangle heights). This eliminates the need for separate timing indicators, as the existing candlestick structure is enhanced to convey both types of information, resolving the contradiction through functional consolidation rather than addition.
Data Source
AI summary
A computer implemented method for displaying to a user a candlestick representative of a price range of a market traded security during at least a portion of a time period having a plurality of intratime periods includes receiving a OHLC (open, high, low, close) data of a first intratime period and a OHLC data of a second intratime period, a charting engine generating a candle body from an open price of the first intratime period and a close price of the second intratime period, determining a highest intratime period having a highest price from each high price of each the intratime period and a lowest intratime period having a lowest price from each low price of each the intratime period, the charting engine generating at least one of an upper wick and lower wick, a bottom of the upper wick connected to a top of the candle body above the highest intratime period and a top of the lower wick connected to a bottom of the candle body below the lowest intratime period, and the charting engine displaying the candlestick including the candle body and the at least one of the upper wick and lower wick, where the candlestick visually depicts and enables the user to see proportional to a width of the candle body when the upper wick and the lower wick have occurred during the at least a portion of the time period.