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Visual analysis
Stumbling block of analysis
Different fields of science and economy have already obtained insight and profit from the use of visualization, but finance has only touched advantages of this method. At the same time, financial markets have a variety of highly accessible, precisely measurable data, with immediate rewards available to those who are able to benefit from these data quickly and effectively.
Data visualization is stumbling block of the whole analysis process. It is believed that data visualization is both art and science. Good visualization model turns complex data set into meaningful visual insight of a high impact.
Visualization means fast data perception and timely decision making
In the market we all deal with huge arrays of data in real time. Thousands of symbols should be followed in time and in correlation with other market factors. Large quantities of numerical data are impossible to understand quickly and accurately without years of business experience.
The fastest way to interpret vast ranges of data is through some visual model. The human brain has the ability to catch information in images much faster than that of the figures and tables. By using color, tone, height, shape, shadow, etc. in patterns complex relationships between data sets can be discovered much faster.
During price shocks or fast price movement a trader has no much time to think. In this situation, the threat of financial risk requires the user to act immediately
Proper visualization provides insight
So information reflection for trading must be simple enough to avoid misunderstanding, but powerful enough to provide insight.