A Dots Chart (Dot Plot) displays only the closing price for each period as a dot, without connecting lines. In other words, it plots a series of unconnected dots at the closing price level for each time interval, similar to a line chart stripped down to individual points. This chart type is useful for visualizing the distribution of closing prices over time – in fact, it can resemble a histogram when dots stack up, highlighting how frequently price hits certain levels. Relevance to EAs: Dots charts are primarily a visual tool and are less common for direct algorithmic signal generation. However, an automated trading system could use the underlying concept (frequency of price occurrence) to identify support and resistance zones – essentially areas where many closing price dots cluster. For example, a forex robot might detect that multiple close prices have occurred around a certain level (dense dot cluster), indicating a potential price floor or ceiling. While EAs don’t literally “see” a dots chart, they can compute similar statistics from price data to make decisions about volatility or mean price levels. In practice, dots charts are more often used in manual analysis (even the U.S. Federal Reserve uses a dot plot for interest rate forecasts) and are rarely the basis of automated strategies, but they reinforce concepts like price distribution that robots can factor into their algorithms.

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