Density

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immy
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Density

Unread post by immy »

Here I will explain What is Chart Density.

What is Density and What is a Low Density Chart?
IN general Density is Defined as
noun
1.
the degree of compactness of a substance.
"a reduction in bone density"
synonyms: solidity, solidness, denseness, thickness, substance, bulk, weight, mass; More

IN COMPUTING it means:
a measure of the amount of information on a storage medium.
noun: packing density; plural noun: packing densities
"a low-density floppy disk"

In PHYSICS it means:
the quantity of mass per unit volume of a substance.
the opacity of a photographic image.
2.
the quantity of people or things in a given area or space.
"areas of low population density"

In Trading it means:
Density means the quantity of pips within a candle or a given chart space. In general the higher the time frame the higher the density.


Image


Image

What are the disadvantages of trading low density charts?

Image

(Copyright: this term was coined by the Author and is copyright protected by AIMS Stress Free Trading)
What is the Secret of Successful Trading?
The Consistent Pursuit of DS1 :nerd

The thing that makes me money in trading is when I "Objectively Follow my Trading Plan".

I understand that I can't catch all the moves or all the signals but my objective is to catch THE VALID SIGNALS & ONLY the Valid Signals.

My Deathbed Advice "5:1 Reward to Risk Ratio".

Yo, banana boy! 🍌
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immy
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Posts: 9654
Joined: 22 Nov 2010, 16:46
14

Re: Density

Unread post by immy »

Check these two pictures to understand the underlying density of the markets.

First EUR/USD M5 chart this am, 15 Jan 2015.

15/1/15 nice...
15-01-2015 15-41-50.png

Now check the next picture. Same picture, same pattern. but the chart was DENSE. full of ticks per bar. Amazing
15-01-2015 15-43-08.png
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What is the Secret of Successful Trading?
The Consistent Pursuit of DS1 :nerd

The thing that makes me money in trading is when I "Objectively Follow my Trading Plan".

I understand that I can't catch all the moves or all the signals but my objective is to catch THE VALID SIGNALS & ONLY the Valid Signals.

My Deathbed Advice "5:1 Reward to Risk Ratio".

Yo, banana boy! 🍌
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