Thank you, Dave. As a retired ( and recovering) electrical engineer, I appreciate the technical correctness of log charts. Since I became immersed in investing, about 4 years ago, I have been searching to understand the logic ( predictable and logical ) of the market and to find the indicator(s) that would always make technical sense and to which the market would predictively respond. I've come to the conclusion ( I think ) that the human response to information is not always predictable and depends on what information investors are receiving and acting upon. I wonder if the majority of investors use arithmetic regardless of which is more technically correct?
Thanks, Dave, for the very informative special episode on log charts. May I suggest a special episode on chandelier exit, ATR and their interrelation? I've been using ATR trailing stops but with fixed dollar values, as I don't believe a more flexible approach is available on Fidelity's platform.
Very good, a lesson that I have forgotten, ACP seems to have arithmetic as the default setting, so I have changed that so my long term charts are not congested, I love using trendlines. Since I have gotten back in a few years back in serious way- I feel like your videos are a coaching teaching moment, that people either understand or they don't. How to make money in stocks- by William O Neil in the 90's is when the light bulb went off for me, give me and charts and a calculator and I was hooked. When I hear you teach it as if I am getting a similar chart lesson. p
In my opinion semi log make sense only for longer term charts (years of data) or when trading euphoria style markets (eg quantum stocks recently). And even then one could argue that markets are engineered to go up to the right so log doesn't really gives you that much more insight (if you know basic math and relation between linear and log-log / power type transformations). Capitulation style events are also harder to spot using log and harmonic patterns become basically useless unless you write them from scratch with log scale in mind. So arithmetic is the way to go for active traders - I don't really know any day trader that uses log and I've been in this business for over 15 years.
Thanks David, always great topics. Most of us use arithmetic in my discord. Charting is everything.
Glad you enjoyed this one! D
Thank you, Dave. As a retired ( and recovering) electrical engineer, I appreciate the technical correctness of log charts. Since I became immersed in investing, about 4 years ago, I have been searching to understand the logic ( predictable and logical ) of the market and to find the indicator(s) that would always make technical sense and to which the market would predictively respond. I've come to the conclusion ( I think ) that the human response to information is not always predictable and depends on what information investors are receiving and acting upon. I wonder if the majority of investors use arithmetic regardless of which is more technically correct?
Interesting question! I'm guessing many people use the default setting without really thinking about it- hopefully this video helps change that :) D
Thanks, Dave, for the very informative special episode on log charts. May I suggest a special episode on chandelier exit, ATR and their interrelation? I've been using ATR trailing stops but with fixed dollar values, as I don't believe a more flexible approach is available on Fidelity's platform.
Great idea and will do! D
Very good, a lesson that I have forgotten, ACP seems to have arithmetic as the default setting, so I have changed that so my long term charts are not congested, I love using trendlines. Since I have gotten back in a few years back in serious way- I feel like your videos are a coaching teaching moment, that people either understand or they don't. How to make money in stocks- by William O Neil in the 90's is when the light bulb went off for me, give me and charts and a calculator and I was hooked. When I hear you teach it as if I am getting a similar chart lesson. p
Very helpful. Thanks Dave!
Big fan of the O'Neil methodology and that is the book I recommend for new investors! D
In my opinion semi log make sense only for longer term charts (years of data) or when trading euphoria style markets (eg quantum stocks recently). And even then one could argue that markets are engineered to go up to the right so log doesn't really gives you that much more insight (if you know basic math and relation between linear and log-log / power type transformations). Capitulation style events are also harder to spot using log and harmonic patterns become basically useless unless you write them from scratch with log scale in mind. So arithmetic is the way to go for active traders - I don't really know any day trader that uses log and I've been in this business for over 15 years.
I would agree that for day trading it shouldn't matter at all! Not a big harmonic pattern user so can't speak to that... D