What is Density and What is a Low Density Chart?
If you day trade or trade the lower time frames you should know about this concept. It will save you a lot of lost pips.
Density is Defined as following in general terms
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.
If you day trade or trade the lower time frames you should know about this concept. It will save you a lot of lost pips.
Density is Defined as following in general terms
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.
