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James Sogi Philosopher, Juris Doctor, surfer, trader, investor, musician, black belt, sailor, semi-centenarian. He lives on the mountain in Kona, Hawaii, with his family.

7/12/2005
Using Color to Graphically Display Security Information, by Jim Sogi

All systems of color organization are located in three-space: described by hue, saturation, and value by red, green and blue components in video. Color's inherent multidimensional character can be used to convey additional information within the visual focus area at one time. Five dimensions can be captured with color and box placement. Using a boxplot, the location on the x-y axis gives information about absolute value, and the range over a time period for two dimensions. Text within the box plot can convey information such as absolute volume or bid ask values or rates of change. Color can be used to code the intensity or threshold amounts of hits at bid and the hits at bid can be classified by color value, say red, and the volume at certain thresholds can be coded by the intensity of the hue, darker and darker for high values. So at a glance the price, range, volume, amount of volume and ratio of bid strikes to ask strikes are instantly apparent. Other information can easily be coded, such rates of change, or statistical properties in previously determined ratios. It seems that options might use color to represent the levels of the different derivative moments in one location graphically. This removes screen clutter, confusion and stress in the decision making process and presents a cleaner presentation leading to better understanding.

The human visual system relies on color more than anything for making many visual distinctions and cues. A monochrome display is akin to watching black and white TV. Color is like the sneakers and the two guys and the tiger. The current graphical commercial packages with the same silly indicators are quite tired. The mishmash of screens, quotes, and indicators is confusing and misleading. Imagine, color violins or even different instrument shapes for different statistical properties. Why not tubas for prices under VWAP, or piccolos for prices above the 60 day breakout. The market is a symphony. Why limit the representation of all the information to black and white, and a single speaker and gray bars. So primitive and simplistic! There is no limit, just the imagination. Think how much better Dolby 5.1 surround sound is than the mono radio. What do you watch and hear every day? If you think this new graphical and sound capacity is a waste of time, please, continue to use your black and white bars.

Chair talked about use of sound in his book. Of course the sound of the TRS-80 was pretty bad. Think of the additional sound possibilities to add depth of information. the capacity of the human mind to absorb properly presented information is vast, if done correctly.

Jim Sogi on a different topic:

The weather report (www.prh.noaa.gov/hnl/pages/CWF.php)