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Log scale

lmkwinlmkwin ✭✭
edited April 6 in SharpCharts
There is an option on the chart attributes to use Log Scale on the price chart. Log Scale is pretty neat as it can allow you to see a little more perspective perhaps on the chart.

You can also use Log Scaling on your Indicators that are related to a symbol. For example the Price Indicator. You put a symbol into the parameter box and it displays where you put it. This information is presented on the pane with with a linear scale. If you want to have it displayed in a Log Scale you just need to add a comma and the word LOG, after the symbol in the parameter box

Erin Swenlin did a post recently using this type of scale on the indicator. I added the panel below her's that shows the linear scale of the same symbol






Comments

  • markdmarkd mod
    edited April 6
    @lmkwin - informative post. Thanks.

    I shy away from log scale charts because, if price has increased significantly since the beginning of the chart, detail in recent price activity can be way too compressed, while "ancient history" gets plenty of room.

    It doesn't show so well on this indicator example, but it can be very evident on a price chart.

    Just personal preference, though. Not a knock anyone who prefers log.

    P.S. - it puzzles me why Stockcharts doesn't document these features. Or have they now?
  • lmkwinlmkwin ✭✭
    Nope, not documented anywhere as far as I can tell. They have several like that, like coloring horizontal lines in Indicator Overlays. I've just noted the log on a few of the blogger chart examples, but keep forgetting to mention it in the forum. I think that both Log and Linear have their place. I like to look at things in several scales and configurations in general.

    I use PnF charts mostly, and you have the options on those as well, but they don't have a check box for it. The Traditional and User Defined scales are linear. The Percentage and ATR scaling are log scales. It would be grand if StockCharts allowed a PnF chart to be a user Default chart. Maybe someday.
  • PnF really needs some good PR. Way underappreciated. Bruce Fraser's Wyckoff blog/vlog uses it pretty extensively. Maybe you could drop him, and/or Chip, a line to promote a "PnF only" blog/vlog slot on StockchartsTV. There must be somebody who would want to do it (maybe you? if you have time?).
  • lmkwinlmkwin ✭✭
    I suggested Prashant Shah to both Prashant Shah and to StockCharts.com. He wrote a fantastic new book on PnF. He calls PnF, Renko, and Three Line Break charts, Noiseless charts.

    https://www.definedge.com/team/

    He developed a great software package called Definedge. He covers the India markets. I suggested that if he wanted to break into the US markets, getting together with StockCharts couldn't be a bad idea.

    His team developed some interesting indicators for PnF charts that may allow traditional line chartists to transition to PnF charts using some of their favorite indicators. Neat stuff.

    My Dynamic CSS method is shared with pretty much anyone interested. I have correspondence through my public chartlist (Feedback link is an email correspondence) and with a group from the Nasdaq Dorsey Wright website. That site is more devoted to PnF than StockCharts. I also have shared on this forum and will continue to advocate for PnF.

    I am NOT a trader though, and ALL StockCharts blog contributors are traders. I agree, PnF needs some good PR, as it is a fantastic charting method. I've been a student of PnF since 2008.
  • As I understand it, I think from the DuPlessis book, PnF is adaptable to any time frame (well, box size), so its possible for traders to use it - e.g. in FX. So why not stocks?

    It's true the current contributors focus on trading, but I think that re-inforces the idea that that PnF could help broaden the audience to those with a longer term perspective.

    In any case, thanks for your contributions here. Much appreciated.
  • lmkwinlmkwin ✭✭
    edited April 8
    I wouldn't say that you can't use PnF to trade. You definitely can. It works on all time frames from intraday to monthly. After all, it's a charting method, just like all the others. I call learning it, like learning a foreign language or a new skill. It takes a little time and effort, but once you "get" it, it becomes a valuable chart style to reference.

    I recommend using a few PnF chart style options. Pick your time frame (intraday, daily, weekly, monthly) and then review the Traditional 3 box reversal scale. Also Review the 2 or 3% 3 box reversal. Make sure to also select the option to use High/Low as well as Close Only prices for a slightly different view.

    With a 3 box reversal chart, the chart should look bullish, bearish or neutral. A 3 box reversal chart has a strong continuation bias. A nifty thing about PnF charts is that you can calculate price objectives to use for reference. Price objectives are based on the strength of the chart patterns as they form. StockCharts.com calculates the Vertical PO on 2 box reversal and higher charts. This number will show in the header as well as being shown in the right hand scale on the chart.



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