Chart calibration: psychology / perception

[trendie]

I have been musing about trading in general, and charts in particular.
You know how people have difficulty in buying in an uptrend, (gone too far, bound to fall back), or difficulty in shorting (its cheap, should buy here)?
I wonder if chart sizing is the source of trading issues.

Is it possible, that when the price is nudging the top of the screen, viewers perceive there is no "space" for the price to go to, and think the open space beneath the space is the only place price can go?
Vice versa for downtrends. Viewers see the price nudging the bottom of the screen, and think it has no further to drop?

I wonder if its possible to be able to calibrate the chart so that current price is in the centre of the screen, so there is equal "open space" above and below the current price.

Does the above make sense?
Or, do I have too much time on my hands?

 

[MasterOfCoin]

What interesting thoughts.

Yes, you have too much time on your hands.

On the other hand, time you enjoy wasting is not wasted time !

It is possible (on some charts, at least) to calibrate in the way suggested, but I've not seen any that do this by default.

Which means you'd probably have to tinker with it continually to keep it centered over time.

Probably not worth the effort, bar the satisfaction of achieving that result.

.. is this another take on the 'glass half full/empty' perception ??

I wonder ....

 

[tomorton]

Yes, its a natural response to conclude what is going to happen next from a visible fraction of reality. Its how predators predate their prey and how prey escape their predators.

People temper what they are seeing with their experience of market behaviour and superstitiously draw the wrong conclusion.

Worse is when writers encourage traders to draw conclusions from the angle of slope of a MA - the angle of slope can be derived wholly from the scale of the chart, not from the price data it contains.

The problem with standardised scaling of charts is that it leads, e.g. in forex, to attempting to make out TA features in the narrowest sliver of screen. Its a classic case of wanting to see the trees, by actually getting closer to the wood.

 

[fibo_trader]

I have been musing about trading in general, and charts in particular.
You know how people have difficulty in buying in an uptrend, (gone too far, bound to fall back), or difficulty in shorting (its cheap, should buy here)?
I wonder if chart sizing is the source of trading issues.

Is it possible, that when the price is nudging the top of the screen, viewers perceive there is no "space" for the price to go to, and think the open space beneath the space is the only place price can go?
Vice versa for downtrends. Viewers see the price nudging the bottom of the screen, and think it has no further to drop?

I wonder if its possible to be able to calibrate the chart so that current price is in the centre of the screen, so there is equal "open space" above and below the current price.

Does the above make sense?
Or, do I have too much time on my hands?

counter-violent ran into the same problem so he stacked monitors. The uptrend continued ferociously so he stacked again. Now he has 8 stacked monitors and is out of space due to the ceiling/floor upstairs resident. That is the best indicator that a trend reversal is in order. Go SHORT

 

[fibo_trader]

I have been musing about trading in general, and charts in particular.
You know how people have difficulty in buying in an uptrend, (gone too far, bound to fall back), or difficulty in shorting (its cheap, should buy here)?
I wonder if chart sizing is the source of trading issues.

Is it possible, that when the price is nudging the top of the screen, viewers perceive there is no "space" for the price to go to, and think the open space beneath the space is the only place price can go?
Vice versa for downtrends. Viewers see the price nudging the bottom of the screen, and think it has no further to drop?

I wonder if its possible to be able to calibrate the chart so that current price is in the centre of the screen, so there is equal "open space" above and below the current price.

Does the above make sense?
Or, do I have too much time on my hands?

A new Bear market low ............... 3 of the core 30 in this episode. MasterofCoin is not in the core 30 but quite likely Bitcoin's lawyer

 

[fibo_trader]

I have been musing about trading in general, and charts in particular.
You know how people have difficulty in buying in an uptrend, (gone too far, bound to fall back), or difficulty in shorting (its cheap, should buy here)?
I wonder if chart sizing is the source of trading issues.

Is it possible, that when the price is nudging the top of the screen, viewers perceive there is no "space" for the price to go to, and think the open space beneath the space is the only place price can go?
Vice versa for downtrends. Viewers see the price nudging the bottom of the screen, and think it has no further to drop?

I wonder if its possible to be able to calibrate the chart so that current price is in the centre of the screen, so there is equal "open space" above and below the current price.

Does the above make sense?
Or, do I have too much time on my hands?

Drop down to DOS and use the Pipe command with code 3.142 holding down Shift. Make changes, then clear out of DOS the ususal way.

In exchange you owe me another Existential Threat Treat 👠

 

[fibo_trader]

Or, do I have too much time on my hands?

Do birds fly?