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Histograms

Joe do you look at volume using a Histogram? Wouldn't it be better to chart volume as an oscillator?

A Histogram is a graphical representation that organizes a group of data points into user-specified ranges. It is similar in appearance to a bar graph. The histogram condenses a data series into an easily interpreted visual by taking many data points and grouping them into logical ranges or bins. However, you don't need to view volume that way.

I know traders to chart volume as an oscillator and even put a moving average on it. You can do the same thing with a histogram - attach a moving average to it.

The important thing is to see data in a way that is best for you. We are all individuals with preferences as to how we like to see things. I don't think one way is better than another. View things in such a way as to what will help you and give you the information you are looking for.


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Tuesday, 25 June 2024

Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.