Density

Additional Entry and Trade Management Techniques
Further enhance your trading prowess
Learn new skills and techniques to extract more from the market
User avatar
immy
Founder
Founder
Posts: 9590
Joined: Mon Nov 22, 2010 4:46 pm
11

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 is trading ONLY when I see MY SETUP (TTPP). That's it.
I'm not here to catch every move, I'm here to catch good moves ONLY when MY SETUP appears.

User avatar
immy
Founder
Founder
Posts: 9590
Joined: Mon Nov 22, 2010 4:46 pm
11

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
You do not have the required permissions to view the files attached to this post.
What is the Secret of Successful Trading?
The Consistent Pursuit of DS1 :nerd
The thing that makes me money is trading ONLY when I see MY SETUP (TTPP). That's it.
I'm not here to catch every move, I'm here to catch good moves ONLY when MY SETUP appears.