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<SPAN
class=420523902-21052001>Semi-log charts are appropriate for large price swings
as well as extended time periods.
<SPAN
class=420523902-21052001>
Trend
lines definitely work best on semi-log charts. Price action that looks
hyperbolic on an arithmetic chart will settle down to a normal trend line
in semi-log.
<SPAN
class=420523902-21052001>
<SPAN
class=420523902-21052001>Percentage price intervals are proportional in
Semi-log. Don't know why anyone would want to use anything
else.
<SPAN
class=420523902-21052001>
<SPAN
class=420523902-21052001>Stan
<FONT face="Times New Roman"
size=2>-----Original Message-----From: wavemechanic
[mailto:wd78@xxxxxxxxxxxx]Sent: Sunday, May 20, 2001 5:54
PMTo: realtraders@xxxxxxxxxxxxxxxSubject: Re: [RT] The
Gold Thread
Stig:
The rule of thumb that I have seen in various books
is that arithmetic is OK for periods less than one year (difference between
the two is small), but that semi-logarithmic should be used above that (or
just use semi-log all the time). I don't know why one would use semi-log
for extended price ranges unless the time factor comes into play. As for
which trendline is right, I don't know of any study that has established which
gives the best signals, and that should be the determining factor.
Perhaps someone has more information.
Bill
<BLOCKQUOTE
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
Stig O
To: <A
href="mailto:realtraders@xxxxxxxxxxxxxxx";
title=realtraders@xxxxxxxxxxxxxxx>realtraders@xxxxxxxxxxxxxxx
Sent: Sunday, May 20, 2001 6:41
PM
Subject: Re: [RT] The Gold Thread
<BLOCKQUOTE
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
Stig:
The picture is a bit different if
semi-logarithmic scale is used, which is appropriate for extended
times.
Bill
Interesting point Bill, I have to think about
that one.
Do you mean to say that one is right and one
is wrong?
Or could one say: "Hey, look at this one, it
spells danger(arithmetc scale). Don't trust you semilog
scale.
Or should one say"I use semilog scale, the
buy/signal that shows up on you arithmetic scale has no
significance.
What I have learned is to use semi log scale
for extended *price ranges*. I haven't heard the argument with regard to
time before.
Interesting...
( I tried to send this as private mail, but
my browser wouldn't accept your adress)
Best regards
Stig
Other inputs on the subject are
welcomed.
Just got this link from someone else by the
way. Something for our stocktrader members.
<A
href="http://www.investertech.com/tkchart/tkchart.asp?stkname=drooy+hgmcy+gold+nem+hm+asa+pdg+%24xau.x&px=2&wt=0";>http://www.investertech.com/tkchart/tkchart.asp?stkname=drooy+hgmcy+gold+nem+hm+asa+pdg+%24xau.x&px=2&wt=0To
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