Registered User
Joined: 7/16/2007
Posts: 7
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If I use the Arithmetic scaling method the Russell 2000 has not yet violated it's March uptrend line, whereas if i use Logarithmic it has violated it, tested the previous high, failed and is now approching the Dow theory confirmation line of trend change. Which scaling are the Wordens using to identify trends and more importantly, trend changes? These are two very different results and I'd like to know what the professionals use, especially in strongly trending markets at pivotal points.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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In general you would use log for longer timeframes.
(since it is scaled in percent)
If price hasnt changed much or you zoom in, there shouldnt be much difference.
Thanks
diceman
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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roberttilman,
Welcome to the forums. A very good foundation for learning how to use TeleChart can be gained by reviewing the following:
If you are new to TeleChart READ THIS FIRST!
The trainers can't give setting, interpretation or investment advice. That said, in Arithmetic Scaling if Price went up a fixed value each day it would be a straight line while in Logarithmic Scaling if Price went up a fixed percentage each day it would be a straight line.
Chart scaling - arithmetic, logarithmic and custom scaling
-Bruce
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