Concept

Candlesticks → Quaternions

Every OHLC bar becomes a quaternion state in 4D space

Every OHLC bar becomes a quaternion state in 4D space. Our API handles the transformation; you query the geometric representation. No more parsing CSV files.


The Challenge


Traditional candlestick charts display four key price points: open, high, low, and close (OHLC). While visually intuitive, this representation loses the geometric relationships between these values and makes it difficult to apply advanced mathematical techniques.


Our Approach


We encode each candlestick as a quaternion - a four-dimensional number that naturally represents rotations in 3D space. This encoding preserves the geometric structure of price movements and enables kinematic analysis.


The Encoding Process


1. **Normalize the data**: Scale OHLC values relative to the opening price

2. **Map to quaternion components**: Each price point becomes a component (w, x, y, z)

3. **Preserve relationships**: The quaternion structure maintains the geometric relationships between prices


Why Quaternions?


Quaternions are ideal for representing market state because:


  • They naturally encode rotational transformations
  • They avoid gimbal lock issues present in other representations
  • They enable smooth interpolation between states
  • They provide a compact, efficient representation

  • Applications


    This encoding enables:


  • **Momentum tracking**: Following the path of market momentum through state space
  • **Pattern recognition**: Identifying similar market conditions across different timeframes
  • **Signal generation**: Detecting topological features that precede significant moves

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    Interactive visualization - Candlesticks → Quaternions