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 02:01 PM.
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.
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.
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."
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.