help me understand this part of the chart on Bitcoinwisdom

[flyguy]

Can someone elaborate and help me understand this part of the chart.  What it is and how it is useful?

http://s27.postimg.org/uiero2ewj/Screen_Shot_2013_12_10_at_9_05_31_PM.png

[Singlebyte]

This a a visual graph of the bids/asks.  

Green = asks
Red = bids


This shows you the market depth.  You visually can see large buys or sells with long horizontal lines. 
(For example, your picture shows a lot of bids at $950)


http://bitcoinwisdom.com/help/charts

[empoweoqwj]

Can someone elaborate and help me understand this part of the chart.  What it is and how it is useful?

Can you elaborate on which part of that graph you need help understanding. There's several different components in that picture.....

[flyguy]

really?  it's that difficult for you to see the focus of the image in the column center?! The only full part not cropped?!

[empoweoqwj]

really?  it's that difficult for you to see the focus of the image in the column center?! The only full part not cropped?!

You said "this part of the chart" - I presume you meant the part in the picture, you know, the part you have had cropped from the original graph.

There is no "focus" in the image you uploaded. When people want to indicate an area of interest they normally overlay an arrow or blur out the other parts.

Sorry for trying to help you. Didn't realize I would offend you asking what exactly you needed help understanding.

[flyguy]

using a bit a sound reasoning and perhaps an ounce of critical thinking it is easy to understand what I was asking.  Seems you were simply being difficult from the get go.

[silicont]

empoweoqwj,  or someone else, please explain the cropped portion of flygys image.  What is the green and red shaded sections (above and below) in relation to the yellow median line? 

[Singlebyte]

This is a little tricky to explain over text...but here goes


Yellow line is a 2D representation of the market activity.  If you had a candlestick chart you would see basically a 3D representation of market activity and thus more detail.



So.....

Yellow line is the final closing price for the time period drawn out as a line chart. This could be sliced in 1 minute increments, 5 minute increments and so on.  (M1, M3, M5, M15, Etc) (Since we are using a line to represent the chart instead of candle sticks, you have to slice up time frames and select the last market trade.)

Green is all the completed buys above the "market closing" of the time frame. (this shows you how much trading was happening above the close price (yellow line)

Red is all the completed sells below the "market closing" of the time frame.  (this shows how much trading was happening below the closing price.


Basically it is a line chart made to represent a candle chart by showing trading volume above and below the closing price.



Damn...did that make any sense?...lol   

[silicont]

Thanks, singlebyte.  You effectively put into words what I suspected.