Dynamic Price Range Symbol Generation for Financial Charting
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Solution Overview
Problem
Conventional charting methods, such as candlestick and OHLC charts, fail to provide specific information on when high and low prices occurred during a time period, leading to inaccurate and incomplete market analysis.
Innovation Solution
The proposed solution involves generating and displaying enhanced candlesticks and OHLC charts, where the body of the candlestick widens proportionally to the percentage of the time period traversed, and separate upper and lower price bars are used to indicate the times of high and low prices, without relying on 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 remains simple and easy to understand, but the information about when high and low prices occurred is lost
Solution Approach 1:
The candlestick body is segmented into multiple sections, where each section represents a different time period within the overall time frame. The high price and low price are indicated by segments at different vertical positions within the body, allowing timing information to be preserved through spatial segmentation rather than adding separate graphical elements.
Solution Approach 2:
The patent transforms the one-dimensional time sequence into a two-dimensional spatial representation within the candlestick body. By mapping time positions to vertical segments within the body, the chart conveys temporal information about when high and low prices occurred without requiring additional graphical indicators outside the traditional candlestick structure.
2Loss of information
If the candlestick body width is increased to show more time period information, then more time data is visualized, but the chart becomes less readable and more complex
Solution Approach 1:
Different segments of the candlestick body have different visual qualities or meanings. Specific segments represent different time periods, allowing the chart to convey time traversal information through localized variations within the body rather than uniformly increasing the overall width. This maintains readability while encoding temporal information.
Data Source
AI summary
A method of updating a displayed 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, wherein the intra-time close price of the Nth intra-time period is a close price of the time period and N is an integer greater than one, determining, an open price of the time period from intra-time price data including an intra-time open price and an intra-time close price corresponding to a received (N−K)th intra-time period, wherein K is an integer less than N and the time period includes a plurality of intra-time periods ranging from the (N−K)th intra-time period to the Nth intra-time period, determining an average price from the intra-time close price of each intra-time period of the plurality of intra-time periods in the time period, determining a total-above-average-price counter value by determining, for each particular intra-time period of the plurality of intra-time periods in the time period, whether the intra-time close price of the particular intra-time period was greater than the average price, so that the total-above-average-price counter value indicates a number of the intra-time periods for which the intra-time close price was greater than the average price, erasing the displayed symbol at a particular position, and generating and displaying a new symbol at the particular position, which illustrates a new relationship between the total-above-average-price counter value and the plurality of intra-time periods in the time period.