Market Speedometer Visualizing Price Acceleration
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Solution Overview
Problem
Technical analysis of market trends relies heavily on historical and real-time price fluctuations, but existing tools are limited in their ability to quickly identify and visualize securities with high speed change and acceleration, making it difficult for traders to predict future price movements effectively.
Innovation Solution
A market motion system that analyzes and displays securities data, allowing users to visualize price speed, acceleration, accumulation speed, and distribution speed, along with customizable filters and alerts, enabling the identification of bullish and bearish price movers, and facilitating trading decisions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If traditional price charts and technical analysis tools are used, then historical and real-time price data can be viewed, but the ability to quickly identify and visualize securities with high speed change and acceleration is limited
Solution Approach 1:
The patent introduces speed and acceleration dimensions to traditional price analysis. Instead of only showing price over time on a 2D chart, the system calculates and displays price speed (rate of change) and acceleration (rate of change of speed) as additional dimensions, enabling traders to quickly identify securities with high momentum and potential reversals
Solution Approach 2:
The system introduces speed and acceleration as intermediary metrics between raw price data and trading decisions. These intermediary calculations transform complex price movements into intuitive speed and acceleration values that are easier to interpret and act upon
2Loss of information
If multiple metrics (price speed, acceleration, accumulation, distribution) are calculated and displayed, then market analysis capability is enhanced, but system complexity increases
Solution Approach 1:
The patent segments market analysis into distinct components: price speed, price acceleration, accumulation speed, accumulation acceleration, distribution speed, and distribution acceleration. Each metric is calculated and displayed separately, allowing traders to focus on specific aspects of market behavior without being overwhelmed by a single complex indicator
Solution Approach 2:
The system implements a universal analysis framework that calculates multiple metrics (price and volume-based speed and acceleration) using a consistent methodology. This multi-functional approach allows the same computational engine to serve multiple analytical purposes, reducing overall system complexity despite the breadth of metrics provided
3Measurement precision
If real-time data processing and visualization is implemented, then prediction capability is improved, but data processing requirements increase
Solution Approach 1:
The system implements real-time calculation of speed and acceleration metrics continuously as new price data arrives, without requiring complex batch processing or historical analysis. By performing partial calculations (only the necessary speed and acceleration derivatives) on incoming data streams, the system achieves accurate real-time predictions with minimal computational overhead
Data Source
AI summary
A securities analysis tool and method that allows a user to quickly and easily identify securities or stocks with the highest speed change per unit time and acceleration, or rate of change of speed, relative to other securities or stocks. More specifically, a human-machine interface includes speed and acceleration indicators that allow a user to visualize for one or more securities: the price speed, which is the percentage change per unit time; the price acceleration, which is the rate of change of price speed; the accumulation speed, which is the percentage change per time unit greater than zero; the accumulation acceleration, which is the rate of change of accumulation speed; the distribution speed, which is the percentage change per unit time less than zero; and the distribution acceleration, which is the rate of change of accumulation speed.