LOGARITHMIC or LINEAR for SP500?

Heavenskrow

Newbie
Messages
4
Likes
0
Hey guys I have been a huge fan of TA ever since I started trading.
Ive been bearish since feb 22nd and becoming bearish as time passes from there.
Bearish divergence, failed inverted H+S, and BULL TRAP on June 1st

Now my question is for the trend from March low 2009 for the sp500, which charts do the "pros" use? I understand to use logarithmic for stocks like AIG, or SIRI, but i dont see the point for sp500(I mainly use linear to trade)

But I noticed on logarithmic charts, its looking very bearish for MANY indicies all breaking their HUGE supports.
Please let me know which one is best...so i can confirm my bear analysis
Logarithmic:
 
only use log for lonnger term or where there has been an exponential move.the/scaling is actually not log,but semi log.ie exponential values that have apercentage base....the pros do not use log....log is really for scanning.definitely no log for forex...24 hour market
Hope this helps
 
I like to look at both personally as a break of the logarithmic trend line gives an early signal of a possible trend change. For example the logarithmic trend line was broken a few weeks ago and the failure to recapture it gave me a short term sell signal. However, price is still above the non log chart trend line though so is still bullish longer term IMO until that's is breached significantly.

I'm not a pro though, so just my 2 cents if it helps.
 

Attachments

  • SPX_log_weekly_3-6-11.png
    SPX_log_weekly_3-6-11.png
    14.4 KB · Views: 381
  • SPX_weekly_3-6-11.png
    SPX_weekly_3-6-11.png
    14 KB · Views: 387
Last edited:
Why use lines on logarithmic scales? Lines become curves I suppose in logarithmic scales.
 
RonBlack beause these lines would of gotten u out of the Nikkei bubble in a flash and many other indicies like the NYSE on APRIL 2010


Dentist yeah I dont use log for forex....but im thinking logarithmic might be valid for indicies now.
Just look how perfect the NYSE would of gotten u out before May 6th
 
Top