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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: HighTech who wrote (25624)	1/31/2002 10:17:03 AM
From: Atin	Respond to of 34809

Why would you use log scaling vs arithmetic scaling on bar charts? It is the same sort of idea. It is a preference. Traditional scaling was an attempt to do a sort of log scaling before the computing power was available to do this on each box. It is simpler to understand. As far as reliability goes, it depends on the parameters you choose, your timeframe, risk capital, your stop methodology, etc etc. They're both just breakout systems - with slightly different parameters. Gut feel, they'll both suck in trading range markets and will do a decent job following a trend. I haven't tested extensively, but have read studies that imply this. -Atin