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Thread: 1-28-13 monday-broken downtrend?

  1. #11
    denco1 is online now
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    Quote Originally Posted by I_know_nothing View Post
    What are you guys (SLY & DENCO) thoughts on the gap on DDD from 12/31 in the $56 area? That looks like a true gap to me, don't those usually fill at some point?

    EDIT: sorry, gap appears to be around $54 not $56
    Sure does look like a nice juicy gap. Had not looked carefully at the chart. I believe that is around the 50% retrace of the current run. May be a geat entry point there.

  2. #12
    denco1 is online now
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    Quote Originally Posted by siriusly_invested View Post
    Good thinking, Denco. Unfortunately however, you might have missed your opportunity. At least according to the "three touch plus" on the lower trend line where it appears to have already made up its mind to bounce back toward the upper trend line.

    Here's the DDD chart from a few minutes ago.
    Quote Originally Posted by denco1 View Post
    Thanks for the Chart SLY. I may just open one up here in this area then and add on any weakness..
    SLY, take a look at my chart from Stockcharts.com. I show a trend line different from yours. I am using arithmetic scaling not LOG scaling. With log scaling I get the same results as you do. Do you know which is the preferred method or better yet, what do most chartists use in there trend lines? Do you and BassMan use the same Log scale?

    http://blogs.stockcharts.com/mailbag...st=log+scaling

    DDD.jpg


    EDIT: Anyone else care to chime in would be great....

    EDIT2: This chart is why I originally set my entry in the 58-59 range.
    Last edited by denco1; 01-28-2013 at 01:01 PM.

  3. #13
    siriusly_invested is offline
    First of all let me admit we are in agreement with that "juicy" gap which I calculate to be between 53 and 55. Regarding the scaling question, I have to plead ignorance as I never gave it a thought, nor do I know how to select other scaling options. I have to assume that Bassman and I use the same because we have compared charts with a high degree of likeness. Since I don't use Stockcharts to do my plotting, perhaps that is where the scaling differences occur. I'll try to be more aware and will try to research the differences in scaling. I have no idea what "real" chartists use.

  4. #14
    denco1 is online now
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    Quote Originally Posted by siriusly_invested View Post
    First of all let me admit we are in agreement with that "juicy" gap which I calculate to be between 53 and 55. Regarding the scaling question, I have to plead ignorance as I never gave it a thought, nor do I know how to select other scaling options. I have to assume that Bassman and I use the same because we have compared charts with a high degree of likeness. Since I don't use Stockcharts to do my plotting, perhaps that is where the scaling differences occur. I'll try to be more aware and will try to research the differences in scaling. I have no idea what "real" chartists use.
    Thanks SLY-

    I had noticed differences in my charts at times before but had not investigated it and then forgot about it. I think BassMan uses Log but maybe he can confirm. The link I included seems to suggest that Log is preferred for long term trend lines. Either will not affect the moving averages.

  5. #15
    siriusly_invested is offline
    Log vs Arithmatic scaling........

    I investigated and found where to select between the two modes of scaling..........Primarily, my charts seem to be defaulted to Log.

    Just for kicks, I surfed the web and came up with the following preference to "Log scaling" from Investors Business Daily whom I trust as a reliable source of such information. I plan to stick to Log Scaling unless someone tells me the other is a better choice.


    For chart analysis, should we look at a logarithmic or an arithmetic scale?

    "When using a daily chart, an arithmetic scale chart (in which the vertical axis denoting a stock's price shows equal spacing between each unit of price) is fine. For example, a flat base will appear as a tight formation on either the linear or the log scale chart. More importantly, check to see that the percentage price change between the high and the low of the base fits the parameters of the base it portrays. In a good flat base, the stock should never fall more than 10-15 percent below the peak in the base. In a weekly chart, a logarithmic chart has a couple of advantages. If a stock falls from, say, 200 to 100, the depth of the drop will look the same as one that falls from 40 to 20. In both cases, the stock has dropped 50 percent. Also on a log chart, you can more clearly see when a stock is rising fast or too fast in price. If a stock rises 50 percent or more in just a week, it will look more dramatic on a log chart than on an arithmetic chart. Such climax runs following previous big gains often signal the stock's top."

  6. #16
    siriusly_invested is offline
    Denco, maybe you are practiced and comfortible with the "annotating" capabilities on Stockcharts. I just can't bring myself to use it, given the relative ease of use and user friendliness of Freestockcharts.com. I'll attach a SIRI chart from that tool which was captured a few minutes ago. Note on this chart (which is Log scaling) that I have indicated both upper and lower trend lines, 50 and 200dma, BBs, and Fibonacci Retracement. Personally, i think my Think or Swim charts from TDA are a tad more granular, but Freestockcharts is real easy to like. Check it out. Oh yes, I show a 6-mo view in this chart, but it is available in 3M, 1M, daily, or what ever you desire.
    Attached Images Attached Images

  7. #17
    denco1 is online now
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    Quote Originally Posted by siriusly_invested View Post
    Log vs Arithmatic scaling........

    I investigated and found where to select between the two modes of scaling..........Primarily, my charts seem to be defaulted to Log.

    Just for kicks, I surfed the web and came up with the following preference to "Log scaling" from Investors Business Daily whom I trust as a reliable source of such information. I plan to stick to Log Scaling unless someone tells me the other is a better choice.


    For chart analysis, should we look at a logarithmic or an arithmetic scale?

    "When using a daily chart, an arithmetic scale chart (in which the vertical axis denoting a stock's price shows equal spacing between each unit of price) is fine. For example, a flat base will appear as a tight formation on either the linear or the log scale chart. More importantly, check to see that the percentage price change between the high and the low of the base fits the parameters of the base it portrays. In a good flat base, the stock should never fall more than 10-15 percent below the peak in the base. In a weekly chart, a logarithmic chart has a couple of advantages. If a stock falls from, say, 200 to 100, the depth of the drop will look the same as one that falls from 40 to 20. In both cases, the stock has dropped 50 percent. Also on a log chart, you can more clearly see when a stock is rising fast or too fast in price. If a stock rises 50 percent or more in just a week, it will look more dramatic on a log chart than on an arithmetic chart. Such climax runs following previous big gains often signal the stock's top."
    Appreciate the additonal info. SLY. As I am thinking about it, if I remember correctly, the reason I toggled between the 2 a few months back was as a result of one of the trend lines on my chart was not matching up with one that BassMan had posted. I was able to get them to match up by using the arithmetic scale. I believe StockCharts.com defaults to Log Scale. The trend line I was trying to match up was a long term SIRI trend line.

  8. #18
    Geoworld is offline
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    Quote Originally Posted by siriusly_invested View Post
    Good thinking, Denco. Unfortunately however, you might have missed your opportunity. At least according to the "three touch plus" on the lower trend line where it appears to have already made up its mind to bounce back toward the upper trend line.

    Here's the DDD chart from a few minutes ago.

    Consolidation here then down again...then buy

  9. #19
    imromo24 is offline
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    Quote Originally Posted by denco1 View Post
    SLY, take a look at my chart from Stockcharts.com. I show a trend line different from yours. I am using arithmetic scaling not LOG scaling. With log scaling I get the same results as you do. Do you know which is the preferred method or better yet, what do most chartists use in there trend lines? Do you and BassMan use the same Log scale?

    http://blogs.stockcharts.com/mailbag...st=log+scaling


    DDD.jpg


    EDIT: Anyone else care to chime in would be great....

    EDIT2: This chart is why I originally set my entry in the 58-59 range.
    you should add MACD, Ichimoku clouds or pivot lines to the chart. Those help me with time frames on how long to wait for something to play out.

  10. #20
    denco1 is online now
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    Quote Originally Posted by Geoworld View Post
    Consolidation here then down again...then buy
    Quote Originally Posted by imromo24 View Post
    you should add MACD, Ichimoku clouds or pivot lines to the chart. Those help me with time frames on how long to wait for something to play out.
    I appreciate the feedback guys!!

  11. Ad Fairy Senior Member
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