Scroll Top


    Frequency Distribution


    The frequency distribution is a representation that shows the number of observations within a given interval, in either a graphical or a tabular format. The size of the interval depends on the analysed data and the analyser's goals. The intervals have to be exhaustive and mutually exclusive. Usually, frequency distributions are used in a statistical sense. In general, the distribution of frequencies can be associated with a normal distribution chart.

    Understanding Frequency Distribution

    A frequency distribution, as a statistical method, provides a visual representation for the distribution of observations within a given study. Analysts also use the distribution of frequencies to display or explain the data obtained in a sample.

    For starters, children's heights may be divided into many different categories or ranges. Some are tall when calculating the height of 50 children, while some are short, but there is a high chance of a higher frequency or concentration in the middle range. The key criteria for data collection are that the intervals used do not overlap and must include all possible observations.

    Usage in Trading

    Frequency distributions are not widely used in the investment world. However, traders who imitate Richard D. Wyckoff, a pioneering trader in the early 20th century, use a frequency distribution approach to trading. Investment houses are still using the method of teaching traders which needs considerable practice.

    The frequency chart is referred to as a point-and-figure chart, which was developed as a result of the need for floor traders to take note of market activity and recognise patterns. The y-axis is the measuring element, and the x-axis is the count of frequencies.

    Any price shift is denoted in Xs and Os. If three X's arise, traders view it as an uptrend; in this case, demand has exceeded supply. When the chart shows three O's in the reverse situation, it means that supply has exceeded demand.

    Popular Topics

    Latest Articles

    Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

    Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

    CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

    Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

    Cleartax is a product by Defmacro Software Pvt. Ltd.

    Company PolicyTerms of use


    ISO 27001

    Data Center


    SSL Certified Site

    128-bit encryption