|
PureBytes Links
Trading Reference Links
|
Sorry Alex: If you change the scale differentially, you change the slope.
Nuff said.
Regards, Jack.
----- Original Message -----
From: "Alex Matulich" <alex@xxxxxxxxxxxxxx>
To: <omega-list@xxxxxxxxxx>
Sent: Wednesday, December 10, 2003 10:06 PM
Subject: Re: TL Angle function
> 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
>
|