Monthly Archives: May 2024

A small introduction to Nx chart

Next generation noiseless charts

What is Nx chart?

• A charting technique that represents price movements without considering time.
• Focus is solely on changes in price, filtering out minor price fluctuations and noise.
• It is based on a simple premise: prices move in trends and reversals.
• Highlights trends and reversals more clearly, making it easier to spot buying and selling opportunities.
• Filters out minor price fluctuations, providing a clearer picture of the overall market trend.
• Helps identify significant support and resistance levels and chart patterns.

How can Nx chart help me?

            •          It is more readable to the human eye.

                        It eliminates subjectivity and emotional bias, focusing solely on price action.

            •          It can automatically magnify the active and shrink the non-active areas.

                        Helps identifying and trading with the prevailing trend.

•          It can take advantage of those price movements which go undetected in conventional charts.

Useful in taking positions when a stock breaks through a significant support or resistance level.

                        Can help identify trend reversals and taking advantage of the change in direction.

•          Standard indicators when applied to these charts produce extraordinary signals because most of the noise has already been absorbed.

It is a powerful tool for technical analysis, providing a clear and objective view of market trends.

•          Works with different financial instruments like stocks, futures, commodities and currencies.

•          It is a quantum leap which can become the building block for more efficient trading systems.

We encourage further exploration and experimentation with Nx Charts charts as part of a comprehensive trading strategy.

How is Nx chart better than any other noiseless chart?

• Nx charts are plotted as OHLC bars or candlesticks which is the preferred form of charting for more than 99% of the traders.
• Nx charts are truly noiseless charts unlike P&F, Renko, Kagi, LineBreak.
• Nx chart only filters the financial noise but does NOT distort the picture by adding any fillers or truncating the actual price action. Thus Y scale is left intact.
• Nx chart is the only noiseless chart which can show trading gaps.
• Nx charts do NOT repaint like other noiseless charts. Hence the time arrow on the X axis is never disturbed.
• Nx chart shows all price values as actual unlike any other noiseless chart. There is simply no padding or truncation of prices. More effective noise removal without distorting the price signal.