Discussion of article "Price series discretization, random component and noise" - page 3
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Why do bricks have both an upper and lower shadow? There are many bricks in Figure 4, some with both upper and lower shadows. If the closing price is higher than the opening price, then this brick is rising. At the time a rising price that meets the step size occurs, this brick should close immediately and there will be no price higher than this closing price without an upper shadow.
For rising bricks, the lower shadow is easy to understand. A price below the opening price appears, but then a closing price above the opening price appears. The length of the lower shadow should not be greater than the step length. Otherwise it becomes a falling brick.
Because bricks are built with closing price and candles do not take into account the maximum value.