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In a message dated 98-09-20 01:46:41 EDT, prestonm@xxxxxxxxxxx writes:
> simply put, the traditional approach is to use end-of-day (or bar)
> data... view the range hi & low... in a column of x's, you look at the
> hi & add any x you can based on the bar hi; if no x is added, look at
> the low & post a reversal of o's if you get a (3)-box reversal...
> otherwise, o change in chart.
>
> additionally, TS will not vary the chart scale... you set at $1 or $.50
> or wherever & that is it. it should for example use $1.00 boxes from
> $20 to $100; $.50 under $20; $2 over $100 (as i recall it's $5 over
> $300). (similar effect to a log chart as you can see)
>
> the TS problem is that intra-day moves are (all) posted & the chart
> moves to the right too fast, crossing the bullish support or bearish
> resistance line early, resulting in turning the (stock) bearish or
> bullish when it has in fact not done so.
Good Grief
For once trade station does it right and we are complaining. The
only reason the rules described are used on end of day data is we have no idea
how the moves might have taken place within the bar, and so it would be
impossible to reconstruct. The ideal is to have the intraday data, and so
know exactly how the moves were in fact done, and thus you can really build an
accurate P&F chart. Tradestation, does it exactly right, with the intraday
data. You should be able to see things a lot earlier then normally.
Problem is not being used to seeing these things. Kind of like having just
daily data, and then seeing 60 minute bars for the first time.
As for the automatic scaling, yes I agree, and have seen the same
rules. I am sure that they could incorporate them into the charting module.
Just a question of whether there is enough demand, to justify the programming
time.
Pete
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