Re: Calculating Log Scale Retracements

["Chris Cheatham" <nchrisc@xxxxxxxxxxxxx>]

Kent,

Thanks for your interest.  What I am trying to get at is the formula to
calculate the log scale 50% retracement.  If you make a log scale chart on
TS, and add a support resistance tool with 50%, the price at which the 50%
level falls will be different than if it were on linear scale.  What I am
after is how to calc the log retracement, as opposed to just looking at
it/reading it off  the chart.

Thanks,
Chris



----- Original Message -----
From: "Kent Rollins" <kentr@xxxxxxxxxxxxxx>
To: "OmegaList" <omega-list@xxxxxxxxxx>
Sent: Monday, September 04, 2000 5:21 PM
Subject: Re: Calculating Log Scale Retracements


> 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
>