The Inversion (INV) chart is a timeless chart type used to represent price action more accurately to its actual variance, regardless of elapsed time. Unlike traditional timeframe-based charts (such as 1-minute, 5-minute, or 1-hour charts), the Inversion chart prints new candlesticks only when the price moves a predetermined number of points in the opposite direction of the prior move.
To select this chart type, simply set the interval to Tick (Inversion):
This chart is a tool that tracks bullish and bearish moves through candlesticks formed by price highs and lows. Unlike conventional charts, a new candlestick is generated only when the Inversion move reaches a defined X amount, allowing for a more precise analysis of trend shifts.
In a bearish candlestick, a bullish Inversion is measured from the lowest price, and the new candlestick forms when the upward variance reaches the X setting. In a bullish candlestick, the logic is reversed: starting from the highest price, a drop that reaches the X setting generates a new candlestick.
Larger candlesticks are formed when the downward or upward variance is less than the defined X and does not trigger the desired Inversion, showing mixed upward and downward fluctuations until the Inversion move occurs.
Difference between Inversion Point (PI) and Inversion (INV) charts
Although both are timeless charts, the INV (Inversion) and PI (Inversion Point) charts utilize distinct construction logic. On the INV chart, the candlestick expands as price moves and closes only when a counter-move occurs that equals the defined Inversion point. On the PI chart, each candlestick represents only a complete Inversion with a fixed size in points, without showing the intermediate price action. In other words, the Inversion(INV) chart shows the entire price path leading up to the turn, whereas the Inversion Point (PI) chart displays only the successive turns.
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