Price Activity (PAC) charts are a type of stock chart used in the
Technical Analysis
In finance, technical analysis is an analysis methodology for analysing and forecasting the direction of prices through the study of past market data, primarily price and volume. Behavioral economics and quantitative analysis use many of the sam ...
of stocks.
PAC charts are unique in the way they represent "volume" (the number of
shares traded every day). Traditional stock charts display volume data as a
histogram on the bottom of stock charts. PAC charts, on the other hand, track and compound estimated volume data at each price level and color-code this information directly in the stock chart.
This approach adds an order of magnitude of information to the chart, as volume is charted in 2-D instead of 1-D. The "infrared" palette of coloring provides readers with an
intuitive
Intuition is the ability to acquire knowledge without recourse to conscious reasoning. Different fields use the word "intuition" in very different ways, including but not limited to: direct access to unconscious knowledge; unconscious cognition; ...
way of detecting significant volume changes.
{{DEFAULTSORT:Pac Charts
Financial charts