How are Normal Charts different from Aggregated Charts?

In technical terms, the key difference between aggregated and regular chart types lies in how they handle the representation of price data.

Regular or Normal chart types, such as candlesticks or bar charts, display individual price data points at fixed time intervals. Each data point represents the open, high, low, and close prices for a specific time period, such as one minute, five minutes, or daily. Regular charts provide a detailed view of price movements over time, allowing for analysis of intraday fluctuations and patterns.

On the other hand, aggregated chart types focus on price movements while disregarding the concept of time. Aggregated charts aim to filter out noise and minor price fluctuations, providing a smoother representation of price trends. These chart types aggregate multiple price data points to form a single data point, resulting in a condensed view of price activity.

Aggregated chart types, such as Heikin-Ashi, Kagi, Line Break, Renko, Range Bars, and Point & Figure, employ various algorithms and rules to determine when to form a new data point or line. This aggregation process is based on predefined criteria, such as price thresholds or fixed price ranges, rather than fixed time intervals. The result is a chart that emphasizes significant price movements and helps identify trends, reversals, and key support/resistance levels with reduced noise from smaller price fluctuations.

By using aggregated chart types, traders and analysts can gain a clearer perspective on the underlying price dynamics, as these charts provide a more simplified and concise representation of price trends. However, it's important to note that the choice between regular and aggregated chart types depends on the specific trading or analysis requirements and the preferred level of detail and sensitivity to intraday price movements.