1990issue C121-7
Volume-width candlestick bar construction
A candlestick session is drawn as a real-body from open to close, with shadows for the high and low. Volume-width, open-substitution, equivolume-style boxes, and condensed-plot overlap keep that geometry while putting participation on the same bar.
- Each session is a real-body from open to close: a hollow-body when the close is above the open, a solid-body when the close is below, with shadows marking the high and low.
- Volume-width keeps that body and those shadows, then scales the body horizontally by the session's volume so a wider body means greater participation.
- Open-substitution uses the prior session close as the open when no opening print is available, so the same real-body can be drawn on series that lack opens.
- Equivolume-style boxes and condensed-plot overlap are two further ways to place volume on the same price geometry.
The session as a real-body
A candlestick session is drawn as a real-body from open to close. The fill is a hollow-body when the close is above the open and a solid-body when the close is below the open. Vertical shadows mark the session high and low.
Volume-width construction
Volume-integrated candlestick construction keeps the open-close real-body and the high-low shadows. It sets body width from that session's volume, so a wider body means greater volume. That horizontal scaling is volume-width: greater participation draws a wider body.
Open-substitution
When an opening price is unavailable, open-substitution uses the prior session close as the open. The same real-body can then be drawn on series that lack opens.
Equivolume-style construction
Equivolume-style construction plots volume on the horizontal axis and price on the vertical axis. A tall thin box is an easy-movement-box: large price travel on light participation. A wider box marks greater resistance to movement. A square-session has roughly equal height and width and is read as price meeting resistance to further travel.
Named candlestick constructions
An engulfing construction is a later real-body that fully covers the prior real-body. A bullish version is a solid-body followed by a larger hollow-body that contains the prior real-body.
A star is a small real-body that gaps after a long real-body. A morning-star completion requires a third-session hollow close more than halfway through the solid-body that preceded the star.
A doji is a session whose open and close are nearly equal. It is treated as an indecision mark that can later serve as support or resistance.
A hanging-man construction after an advance places the real-body at the top of the range with little or no upper shadow and a lower shadow at least twice the real-body length.
The falling-three-methods construction uses five sessions: three small hollow-bodies between two long solid-bodies.
Condensed-plot overlap
A condensed-plot spaces each session equally on a time axis and encodes volume as the degree of body overlap. That overlap is used to highlight consolidation or volume congestion.
All readings on this track · 12 readings
- 1988Folding night auctions into daily OHLC bars
- 1989Constructing currency-translated commodity OHLC bars
- 1990Volume-width candlestick bar construction
- 1991Session-fitted bars and average-true-range risk bounds
- 1991Overnight versus session decomposition of futures bars
- 1994Constructing range overlap and bar-pattern filters from neighboring OHLC bars
- 1995Open-range stops after a fifty percent retracement
- 1997Lock the ohlc-bar before a flag or candle becomes a setup
- 2003Equal session OHLC bars for multiframe stochastic decisions
- 2003Continuous FX auctions, session-cuts, and gap proxies
- 2008Near-end-of-bar confirmation for discretionary entries
- 2018Constructing roller-and-strip charts from high-low-close pressure