Dynamic P/L Range Symbol Generation for Accurate Price Timing
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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 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 changes without additional graphical indicators.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If conventional candlestick and OHLC charts are used, then the chart structure is simple and easy to understand, but the chart fails to provide specific information on when high and low prices occurred during a time period
Solution Approach 1:
The patent segments the traditional single candlestick into multiple components: an open-close body and separate upper/lower wicks. The wicks are further segmented to show timing information - upper wick position indicates when the high price occurred relative to the time period, and lower wick position indicates when the low price occurred. This segmentation preserves the simple visual structure while encoding timing information in the spatial arrangement of chart elements.
Solution Approach 2:
The patent adds a temporal dimension to the traditional price-range visualization by using the horizontal position of wicks to represent timing within the time period. Instead of only showing price levels (vertical dimension), the chart now also displays when extreme prices occurred (horizontal dimension), transforming the visualization from two-dimensional price display to a four-dimensional representation including time.
2Measurement precision
If traditional OHLC bars are used, then the display is simple, but the representation of price fluctuations is visually misleading and inaccurate
Solution Approach 1:
The patent introduces asymmetry in the candlestick structure where the upper and lower wicks can have different lengths and positions independent of each other. Traditionally, wicks are symmetrically positioned relative to the body, but this invention allows asymmetric placement to accurately reflect the timing of high and low prices. The upper wick may extend further or shorter than the lower wick depending on when extreme prices occurred, providing accurate visual measurement of price fluctuation timing.
3Loss of information
If enhanced candlesticks with timing information are generated, then more accurate price fluctuation information is provided, but more computing resources are required for processing and display
Solution Approach 1:
The patent merges multiple pieces of information into a single integrated candlestick symbol. Instead of creating separate graphical elements for timing information (which would increase processing load), the timing data is merged into the existing wick structure. The position and length of wicks simultaneously encode both price level information and timing information, reducing the number of separate graphical operations needed while preserving complete market data.
4Loss of information
If separate upper and lower price bars are used to show timing, then timing information becomes visible, but the charting system becomes more complex
Solution Approach 1:
The patent makes the candlestick components multi-functional. The upper wick serves dual purposes: it shows the high price level (traditional function) and simultaneously indicates when the high price occurred through its horizontal position (new function). Similarly, the lower wick displays both the low price level and the timing of the low price. This universality allows timing information to be conveyed without adding separate dedicated graphical elements, maintaining charting system simplicity.
Data Source
AI summary
A method of displaying a symbol representative of changes in profit/loss (P/L) during a time period, the method includes receiving transaction data of a trade of a quantity of units of a market-traded object transacted at a first time at an average cost per unit, the trade being indicative of opening a position in the market-traded object, receiving a last price of the market-traded object transacted at a second time, wherein a duration between the first time and the second time is an intra-time period within the time period, incrementing an intra-time period counter value, determining an average price from the last price and the average cost per unit, determining whether the last price is greater than the average price, incrementing an above-average-price counter value in response to determining that the last price is greater than the average price, and generating and displaying the symbol, which illustrates a relationship between the above-average-price counter value and the intra-time period counter value.