We know candles give info only on open/close, max/min and it could be useful. But I guess a histogram will be more useful. For example over a one day window can we get diagram of how many transactions at a given price point. As such the candle info will be just a subset of histogram.
It seems to me that this has been thought about more than once, but at the same time, everyone uses candles.
Iām not able to see what essential information a histogram like this would provide. How would you use it in your trading?
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The candles max/min/opening/closing are just 4 thresholds. But histogram(s) can plot:
- transactions as function of price instead of just max/min
- transactions and price as function of time (start to end of interval) instead of just open/close values
This naturally gives full info of the time window regarding market behaviour and gives good basis for next window behaviour.
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Hmmmm. Might be interesting to see how this works in action!
Just to also help more members see how this will be different from using candles.
Indeed, needs to be available and seen in action across various pair behaviours.
The candles would be a subset i.e. extract max/min/opening/closing.