February 12, 2010

What are the preferred chart settings for Technical Traders?

In terms of scale settings for technical charts, many charting packages allow you to set the scale to either arithmetic or log/semi-log charts.  The differences in terms of drawing trend-lines can be significant, potentially giving wrong entry/exit point signals for major trends.
A good example is illustrated below:
S&P 500 weekly chart analysis by Serge Perreault courtesy of http://www.dshort.com/
Alternatively, a basic trend-line drawn on a different charting package eSignal, using a standard scale.
Which one of the two settings is used by the majority of traders?
You can cast your vote here:  http://polls.linkedin.com/p/77694/bzfqm

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