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Jack:
>Alex: The slope is dependant upon scale. To quote Bill Eckhardt
>in the "New Market Wizards", ". . . it would become abundantly
>clear that the slope value depends directly on the choice of units
>and scales for the time and price axes." Thus a change in these
>values could result in different slopes (and angles) between any
>two points.
No, that's blatantly incorrect, no matter who said it.
Price is price. A dollar of price is a dollar of price no matter
how you're plotting it. A day of time is a day of time no matter
how you're plotting it. You can stretch or compress the axes as
much as you want, but as long as you're working with price units and
time units, you get the same slopes between two points, in terms of
price change per unit time.
Granted, you'll get different slopes if you decide price will be in
ticks per 5-minute bar instead of dollars per week. But as long as
you use a consistent price and time unit, it doesn't matter one whit
what choice of scales you use on your axes.
-Alex
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