DISQUS

terlyn · 1 month ago

Thanks, Corey. Always wondered about this. So if we want a heads up on trend changes, should be use a log scale?
Corey Rosenbloom, CMT · 1 month ago

Hey Terry!

Not necessarily - or at least not if you're trying to anticipate an upside breakout from a downtrend - the log-scale may actually give a lagging signal.

Or, in the case above, if you started getting short at the first log trendline break in Goldman, you would have suffered losses as the stock kept rising.

But in general, yes, log trendline breaks will give an advance warning that an uptrend might be nearing an end.
Jayesh Gala · 1 month ago

Good writeup. I have being following your blog and its very informative to track US Markets.
Keep up the good work.
www.TradersPlace.in
Bob · 1 month ago

Q? When applying fib tools (grids, fans, arcs) does it matter whether you use a arithmetic or logarithmic setting?

Bob
Dominick · 1 month ago

Thanks Corey. I did not expect a whole post on the issue but the answer, as alway, is informative and certainly appreciated. Happy trading!