Chicago Fintech invents a new human-friendly volume profile chart that helps traders focus on actual market sentiment rather than abstract prices.
CHICAGO, May 29, 2019 — TrendSpider, today announced the release of a new type of financial chart, called Raindrop Charts™.
The Raindrop Chart is a new type of financial chart that abstracts away arbitrary constructs, such as open and close prices, and focuses on changes in market sentiment. Rather than conveying price changes, Raindrop Charts incorporate volume to validate price movements and provide deeper insights. This makes it a compelling alternative to traditional candlestick charts that focus exclusively on price and require additional overlays to analyze volume.
In a Raindrop Chart, each bar, known as a Raindrop, covers a fixed period of time and consists of the high, low, along with left and right means. The left mean is the mean price, weighted by volume, for the first half of the period, and the right mean is the mean price, weighted by volume, for the second half of the period.
Financial analysts and active traders can access a detailed overview of the new chart in a newly released white paper, as well as try out the new charts across a wide range of assets on TrendSpider’s cutting-edge automated technical analysis platform.
“Raindrop Charts are unique because they expose hidden changes in market sentiment within fixed time periods,” says TrendSpider CEO, Dan Ushman. “Standard volume bar charts don’t tell you much about where in the candle trading actually took place. For example, the price might move from $1.00 to $5.00 on ‘high volume’, but if 90% of the volume was at $1.20, the move is much less bullish than it would seem on the surface. Raindrop Charts uncover these insights in an easy-to-understand visualization.” ”
TrendSpider is the only platform that gives traders everything they need to test ideas, automate their strategies, find better setups, faster, and accurately time trades. In addition to automated analysis, the company continues to develop innovative new tools and techniques, such as Raindrop Charts, to help traders find better opportunities faster.
“We are just starting to scratch the surface of how Raindrop Charts could be used to glean trading insights,” added Ruslan Lagutin, CTO of TrendSpider. “While we have identified several types of raindrops, we are eager to see how the wider trading community leverages them to develop better insights into market psychology. We recommend further areas of study in our white paper and encourage our users to try it out.”
TrendSpider’s all-in-one AI-powered technical analysis platform features:
- Beautiful charts with all the bells and whistles
- Automatic trendline detection and Fibonacci measurements
- Candlestick pattern recognition
- S/R heatmap visualization
- Breakout and price gap detection
- Multiple timeframe analysis for indicators, trendlines, and Fibonacci levels
- Real-time backtesting
- Multi-factor and dynamic price alerts on indicators, trendlines, and Fibonacci levels
- Automated, in-line backtesting
- And much, much more.
TrendSpider supports real-time data for a wide range of tradable securities, including all U.S. equities and ETFs, over 300 cryptocurrency pairs, and over 900 forex pairs.
Sign up for a free 7-day trial that includes instant access and 1-on-1 training. Cancel anytime.
TrendSpider is the world’s first fully automated, all-in-one dynamic chart technical analysis software for active traders, market technicians, and analysts. After two years of development, TrendSpider launched its platform in March 2018 and has attracted over 4,000 active traders.
TrendSpider also publishes an active blog called “A Better Way to TA“, which features a range of posts curated by trading professionals to help new traders learn about technical analysis while becoming more efficient and effective in their daily activities.