Afraid to Trade Blog - Latest Comments in Levels to Watch on the Dow Jones Nov 3

Re: Levels to Watch on the Dow Jones Nov 3

Dan de Man — Wed, 04 Nov 2009 14:56:25 -0000

Yah, thats pretty wild all right. Golden rule learned a long time a go, don't trade against the feds. But if all gos well we will close above the 10 day ema.

Re: Levels to Watch on the Dow Jones Nov 3

Corey Rosenbloom, CMT — Wed, 04 Nov 2009 14:46:45 -0000

Wow - definitely.

I'm not trading that until we settle down. Reminds me why Fed announcements are only for those who love and embrace risk. Look at the 1-min chart of the SPY or other index - wow.

Re: Levels to Watch on the Dow Jones Nov 3

Dan de Man — Wed, 04 Nov 2009 14:41:04 -0000

Wow that was a pretty wild last half an hour. It's going to be an exciting close!

Re: Levels to Watch on the Dow Jones Nov 3

Corey Rosenbloom, CMT — Wed, 04 Nov 2009 11:34:22 -0000

Oil continues to surprise - it was in a range for the last few months and then - like gold - it broke out of its consolidation pattern (gold broke above a triangle) and now we're having the potential range expansion moves to the upside. These are bullish as long as prices remain above the breakout levels.

Re: Levels to Watch on the Dow Jones Nov 3

Corey Rosenbloom, CMT — Wed, 04 Nov 2009 11:24:25 -0000

Hey Dominick!

A great question but not an easy one to answer.

The best answer is to use both, as both can give signals.

On a log chart, rising (up) trendlines will break SOONER than on arithmetic charts and falling (down) trendlines will break LATER than on arithmetic charts because of the way price compresses at the lower levels.

It won't make a difference on shorter scales, but the log differential increases the longer you look back and - more importantly - how much price changes during that time.

Re: Levels to Watch on the Dow Jones Nov 3

Dan de Man — Wed, 04 Nov 2009 11:08:48 -0000

Sorry to get off topic Corey but we have bullish touch on oil on the 3 10. And it's broken out of the bullish falling wedge!

All the best,
Dan

Re: Levels to Watch on the Dow Jones Nov 3

Dominick — Tue, 03 Nov 2009 19:50:37 -0000

Hello Corey. This question is more in reference to your prior post on the Hewson video. Initally my chart did not pick up the trendline break until I set the chart to logarithmic. Then it was clear. So my question is what setting (log vs. linear) do you use and is one better than the other for trading/technical analysis? I like to be on the same page as everyone else.