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Data Display
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J-Chart's philosophy is based on the assumption that only price (as an event) counts. J-Chart plots price (ticks) as a five-part
Chinese "Jeng" or JE character. One part of the character plots each time a transaction (tick) occurs at a specific price. Consequently, a complete
JE character represents a five-time price occurence.
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J-Chart's way of visualization allows the user to determine the level of equilibrium at any given time. Depending on user preference, any time period may
be set and periods may be combined. Opening prices are plotted in yellow and closing prices for the period are plotted in cyan.
As price plots in a given frame, a triangle begins to form. If it is top heavy, as is the case in the figure below, the part of the plot with
indentations (or caves) will generally be filled in subsequent sessions, unless the market is trending strongly in the opposite direction.
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Visualizing data with J-Chart
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The Point of Origin is generally either the high or low where price plots occur. The Image Point — resulting from the vertical mirroring
of the Point of Origin around the horizontal Balance Point axis (center) — contains no price plots, making this formation top heavy and out of balance.
In a situation where there is equilibrium, the high and low would be vertically equidistant from the Balance Point ("Perfect Equilibrium"), where
the greatest number of price plots occur and JE plots would symmetrically fill the isosceles triangle outlined by the gray lines.
Find more information about the display in the Software Guide section.
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It is important to understand the general concept of non-fixed time intervals and how it is realized in the J-Chart software. In the following
figure we can see that the equilibriums we are trying to identify need different time periods to develop. The first requires 35 units of time
(minutes, hours, days, etc.), the second 24, the third 58 and so on.
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Using non-fixed time intervals to identify equilibriums
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Ideally, we would need a function to flexibly split "time" into intervals with each of different size pattern (first 35, second 24, third 58, etc.).
To make the software-based application user friendly, the realization of this concept is slightly different. According to your trading habits, J-Chart
offers you the ability to flexibly adjust time intervals with each of the same size pattern. By using 35 as interval size we are able to identify the
first equilibrium as a starting point for further analyses. By setting 24 (58) as interval size we can identify equilibrium 2 (3).
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Realization of the non-fixed time interval concept in J-Chart
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