Percentage Scaling?

Discussion in 'Technical Analysis' started by GotherL, Oct 16, 2017.

  1. GotherL

    GotherL

    Wouldn't it be better to always use charts in percentage scaling over price scaling formats? (Esp for daytraders.) You wanna know how much a stock moves by %, not by $ amount. A $1 increase on a stock would mean little if the price was $500. Yet, it can be misleading since regardless of how much % it actually moves it sees $1 as significant and form long green candlesticks. This can lead to over-hyped TA trading mistakes imo.
     
    Last edited: Oct 16, 2017
  2. rin4et

    rin4et

    I have my charts set to % scaling. You should be able to do that as well depending on the platform you use.
     
  3. Simples

    Simples

    For charting TA, trendlines etc. absolute price can have significance (self-reinforcing).
    For risk-adjusted comparisons and relative change logscale may make more sense (relativity).
    It's better to spot why yourself and adjust accordingly, without resorting to magical thinking.
     
  4. Handle123

    Handle123

    Use what you like and don't flip around so you learn with all your efforts the same. People who constantly "try" something else seldom make it cause they never get good using one type of charting.

    What makes sense to you is all that matters, but it is good to know what the masses use so you don't do as they do but wait for their mistakes.
     
    PennySnatch, zdreg, Xela and 2 others like this.
  5. GotherL

    GotherL

    I went back to price scaling. Figured it would take me a while to get use to it.