Log vs. Standard Charts

Discussion in 'Technical Analysis' started by ep510, Jan 8, 2007.

  1. ep510


    Are the standard TA analyses performed on standard charts? Or can they be done on log charts as well?
  2. Log scale will smooth out parabolic trends and is slightly better for longer-term equity charts
  3. ep510


    So standard charts are more often used for shorter term trading?
  4. Use both

    Sorry mods, not a pump:

    This might help http://parttimetrader.com/chartjunkie.htm

    Also consider squared scaling.

    For using geometry on charts for additional conformation your chart must be square scaled.
    WD Gann was the first to recognize that the price and time axes on a chart are not independent from each other. Price and time are related in subtle ways, and when this relationship is recognized (by using properly scaled charts) many interesting patterns and formations start jumping out at the analyst.
  5. I use log charts because percentage gain is all that matters