Why are financial charts always so badly made? I guess it fits the culture that everything is exagerated, but what use can anyone looking at price charts possibly have for a graph where a five point gap looks like the next recession? See this everywhere from the media (Bloomberg, MarketWatch, etc), to online chart defaults (Google, Yahoo), to actual reports, and even to academic publications. Wtf? Is there an industry wide conspiracy to inspire irrational trades or something???
It’s not that they’re bad..it’s just the information is dense. Typical finance charts encodes 4~5 dimensions of data and the brain have a hard time interpreting that many dimensions.
Can you give an example? Most charts I look at have two to four lines max.
A typical stock candle stick chart have these informations: high, low, open, close, plus whether the “candle” is filled or solid and color encoded as green or red. That’s 6 dimensions of data already.
Because that's how you read charts - in finance you typically don't do a single complex chart and keep it. You're constantly checking it intra day, adding more data and then dumping it all once you move to the next one On TV they have to make it exaggerated as it's live market coverage
Or just learn to read charts