Request For Comments: Linear Or Algorithmic on Weekly BTC
Hi All
This is a request for comments RFC about BTC, Trendlines and Scales.
I have noticed that a lot of the ideas published here do use trendlines on higher timeframes for TA. So far so good, the issue though is that some traders are using algorithmic scales and others are using linear scales for the same analysis. As you can see on the chart the results are BRUTALLY DIFFERENT.
There is no correct way or wrong way, but there might be a better way. From all you gurus out there what are your two cents on this, which graph do you think is the better.
Left: Algorithmic trendline on weekly.
Right: Linear trendline on weekly
For those not familiar with the matter:
From Investopedia.com: "Logarithmic price scales are better than linear price scales at showing less severe price increases or decreases. They can help you visualize how far the price must move to reach a buy or sell target. However, if prices are close together, logarithmic price scales may render congested and hard to read."
This is a request for comments RFC about BTC, Trendlines and Scales.
I have noticed that a lot of the ideas published here do use trendlines on higher timeframes for TA. So far so good, the issue though is that some traders are using algorithmic scales and others are using linear scales for the same analysis. As you can see on the chart the results are BRUTALLY DIFFERENT.
There is no correct way or wrong way, but there might be a better way. From all you gurus out there what are your two cents on this, which graph do you think is the better.
Left: Algorithmic trendline on weekly.
Right: Linear trendline on weekly
For those not familiar with the matter:
From Investopedia.com: "Logarithmic price scales are better than linear price scales at showing less severe price increases or decreases. They can help you visualize how far the price must move to reach a buy or sell target. However, if prices are close together, logarithmic price scales may render congested and hard to read."
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