SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Point and Figure Charting
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Bwe who wrote (4198)6/28/1998 1:00:00 PM
From: Ben Antanaitis  Read Replies (1) of 34808
 
Bruce,

In my case, since I use log scaling, the patterns do not change post-split.

I guess someone who uses a chart service and happens onto an issue just has to go with the pattern as it appears post-split.

But, if you are aware of a 'higher order' pattern that was in effect before a split, I guess that that just gives you a warm-fuzzy indicator with which to view the stock. Not as important as an RS or sector indicator, but something you have in your corner the new guy doesn't have. If you are writing an analysis of the stock, you could mention what the current pattern was when the split occurred. If it were me, and I used the Chartcraft scaling technique, I guess I would track the stock in both pre-split mode and post split mode until either the pre-split pattern changed or a new pattern developed on the post-split chart. At that point I would use the post-split chart only.

Ben A.
ez-pnf.com

PS While you are pondering this point, another thought just came to mind. This scaling effect could also significantly change the post split RS chart. It could take a stock that just turned from O to X back to a stock that is still in the column of O's trying to turn up into X's. (This also doesn't happen with log scaling.)
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News