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Would this be different for a log scale? If something goes from 500 to 1000
to 750, log or linear, it's a 50% retracement. The purpose of a log scale
is to make a 50% retracement look the same size whether it occurs between 5
and 10 or 500 and 1000. Maybe a small picture would help.
Kent
-----Original Message-----
From: Chris Cheatham <nchrisc@xxxxxxxxxxxxx>
To: Omega List <omega-list@xxxxxxxxxx>
Date: Monday, September 04, 2000 3:19 PM
Subject: Calculating Log Scale Retracements
Does anyone know the formula to calculate, for instance, a .618 retracement
log scale versus linear? I'm afraid my math is a little stale...
Linear Retracement of a Move Up is easy....
R% = (H - Retracement) /(H - L)
One trading program I have (not TS) calculates % change retracements as
follows, which I believe is conceptually incorrect....
R% = ((H - Retracement)/H) / ((H - L)/L)
This seems incorrect because a retracement less than 100% should not be
below the starting point --- this relationship is not true with this
formula. Also, the relationships between different fib numbers do not hold
true as they should.
Can anyone help me with the log math?
Thanks,
Chris
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