Linear vs. Log…
Downwards Sloping Logarithmic Trendlines are broken LATER than similar trendlines on Arithmetic Charts;
Upwards Sloping Logarithmic Trendlines are broken SOONER than similar trendlines on Arithmetic Charts.
Sometimes these ’sooner’ trendline breaks result in false signals… or just signals that are well in advance of their arithmetic trendline counterparts.
Because this is a daily chart, we’ll see only slight changes between the two charts, but this effect would be magnified over longer periods – making the difference between signals in months instead of days or weeks.
Both have their uses and neither is superior to the other in price analysis.
However, this is a distinction you need to know when applying long-term trendline price analysis.
Corey Rosenbloom, CMT
Afraid to Trade.com
http://blog.afraidtotrade.com/the-difference-between-logarithmic-and-arithmetic-trendlines/
Thanks Eagle
I like Arithmetic scale for daily and weekly and LOG for Monthly
Exactly FGC…
Agree but don’t know how to do it on Android Netdania?