Forum Archive Index - April 2002

[Phaedrus <Phaedrus@techemail.com>]

Nua,
    A Log price scale should always be used when price action covers a large 
range, so that price movements of a given percentage are the same relative size 
at both ends of the scale. Using a linear price scale where price increases 
significantly over the chart, causes the price to appear to increase at an 
increasing rate. Say a stock increased in price 20% every year. With a Log 
scale, this appears as a straight line. With a Linear scale, the price would 
appear to be increasing at an ever increasing rate, and the plot would be 
parabolic in shape. In short, the logical use of trendlines requires 
logarithmic price scales.

Gerry,      
      AUO is in a Secondary downtrend - It is making lower lows and lower highs 
at the moment. The Primary trend is still Up. This Primary Uptrend is composed 
of secondary uptrends and secondary downtrends. I marked the secondary 
downtrends with Red trendlines. So long as these secondary trends add up to a 
primary trend that is making higher highs and higher lows, the Primary trend is 
still up. The Green primary trendline links successive higher lows, and hasn't 
been broken. Overall, the trend is up.

                Phaedrus.

_____________________________________________________________
Are you a Techie? Get Your Free Tech Email Address Now! Visit 
http://www.TechEmail.com

_____________________________________________________________
Run a small business? Then you need professional email like you@yourbiz.com 
from Everyone.net  http://www.everyone.net?tag

----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/