Are candle stick bars a good tool for data compression in natural science?

Abstract

Candle stick bars contain only the first, highest, lowest, and last value of a time series of dozens or thousands of data (see Figure 1). Therefore candle sticks bars are a data compression tool. Mr. Homma in Sakata, Japan, introduced candle stick bars for trading rice around 1850 [1]. The Western version of the candle stick bar is the Open-High-Low-Close bar (OHLC bar). It is commonly used to illustrate changes in price of currencies, securities and other financial instruments. The vertical line indicated the range of prices over a certain time period, which can by a day or an hour, the left tick is the prices at the beginning of the time period (open) and the right tick is the price at the end of time period (close).