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Strategies & Market Trends : Ted Warren's Investolator
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To: frict_inv who wrote (932)1/14/2022 6:46:09 PM
From: WEagle1 Recommendation

Recommended By
investolator2000

   of 1798
 
frict_inv,

I asked myself the same thing early on about using logarithmic price scales. What I concluded was that because Ted came up with the long-term patterns that he liked while using linear scale charts with monthly bars, then linear scale charts with monthly bars must be our primary chart for looking for these same patterns and buy signals. They just don't look the same when using logarithmic price scales. I do use logarithmic price scale charts at times to see more details, especially in the lower prices, but I have not come up with a logarithmic scale equivalent look in trying to make the price action fit Ted's great patterns. I you want to spend the time to determine what all the patterns should look like in any price range as viewed on a logarithmic scale, go ahead. I'll stick with the linear scales as my primary tool for determining buys.

Don't forget that some things change a little when using daily or weekly bars. Ted buy signal rules are based on monthly bars. Once I buy a stock, I watch the action using daily bars as well as monthly bars. Daily bars are especially important in spotting big spike (thrust) moves that Ted say should generally be a signal to sell. Take the profit and run. The price often falls back after such a move, sometimes in the same day. It might be a long time before the stock builds up strength to make another move up.

Besides using logarithmic scale for seeing additional details in the lower prices, I also shorten the time span I am looking at to effectively see the price action in the lower regions when there are significantly higher prices showing up on my longer time span charts that automatically force a price scale that flattens the price action in the lower region when in actuality the price action is not so "quiet". (How is that for a run-on sentence?)

Happy Trades to You.

WEagle
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