DRN with parallel line on arithmetic and how they look with log scale

Image

Above is DRN done in arithmetic scale. Both lines are parallel.

The one underneath is done in log scale with the same trendlines and as they would look and position if they were drawn using arithmetic scale. My suggestion  except in rare cases always draw your trendlines using arithmetic scale .Notice how the lines on the log scales get closer together as prices increase.

BTW  the next CIT  on DRN  look like the 16th.

Image

We are open for discussion.

Advertisements

About ketchemandfleezem

I like to call tops and bottoms in the market.
This entry was posted in Uncategorized. Bookmark the permalink.

One Response to DRN with parallel line on arithmetic and how they look with log scale

  1. luckylucktrader says:

    Very good lesson for traders, good to know . Always draw your lines on arithmetic scale.

    Like

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s