Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] semi-log DGO?
Date: Fri, 31 May 2002 14:36:37 -0500
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This is a multi-part message in MIME format. - ------=_NextPart_000_00B2_01C208B0.9237EC40 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Interesting point you make, Harvey. I am so conditioned to reading the = DGO daily charts in arithmetic scale that I would probably find it = difficult to make a permanent change to log scale. I've never been able = to get the new weekly charts to scale properly on my computer without = reducing the resultant font size to Lilliputian scale, so can't say that = I could make a meaningful comparison. Katherine ----- Original Message -----=20 From: Harvey Brion=20 To: canslim@lists.xmission.com=20 Sent: Friday, May 31, 2002 2:28 PM Subject: Re: [CANSLIM] semi-log DGO? I remember seeing this, Katherine. WON makes a strong argument for using log scale and to me these same arguments apply to daily charts. He seems to be rationalizing linear scale for daily charts as "fine," probably because both the online and printed product daily charts are = in linear scale and it would be too costly for them to make a change. It would be interesting to see what a poll of their subscribers would = say. -Harvey Katherine Malm wrote: > Hi jans, I'm getting better at this...I vaguely remembered something > at Investors.com about the arithmetic v. log scale issue, and sure > enough, here it is: Question:To correctly identify a winning chart > pattern, should we look at a logarithmic scale or an arithmetic = scale > chart? A pattern may look a lot different depending on which type of > scale you use.Answer:When using a daily chart, an arithmetic scale > chart (in which the vertical axis denoting a stock's price shows = equal > spacing between each unit of price) is fine. For example, a flat = base > will appear as a tight formation on either the linear or the log = scale > chart. More importantly, check to see that the percentage price = change > between the high and the low of the base fits the parameters of the > base it portrays. In a good flat base, the stock should never fall > more than 10-15 percent below the peak in the base. In a weekly = chart, > a logarithmic chart has a couple of advantages. If a stock falls = from, > say, 200 to 100, the depth of the drop will look the same as one = that > falls from 40 to 20. In both cases, the stock has dropped 50 = percent. > Also on a log chart, you can more clearly see when a stock is rising > fast or too fast in price. If a stock rises 50 percent or more in = just > a week, it will look more dramatic on a log chart than on an > arithmetic chart. Such climax runs following previous big gains = often > signal the stock's top. --Katherine > > ----- Original Message ----- > From: Spencer48@aol.com > To: canslim@lists.xmission.com > Sent: Friday, May 31, 2002 1:16 PM > Subject: Re: [CANSLIM] semi-log DGO? > Katherine: > > DGO really does it this way: using arithmetic scales > for the Day; and > semi-log for the week!? > > It's asking those of us who analyze charts using the > Canslim method of > using PP. BO's, C&H and Double Bottom formations to > logically evaluate > different items on the same scale. For instance, if the > price of a stock is > high, a flat base will look flat on a semi-log where it > wouldn't in an > arithmetic. > > Does the DGOnline method make any sense to you? Tom? > Anyone? > > jans > > > In a message dated 5/31/2002 8:57:20 AM Eastern Daylight > Time, > kmalm@earthlink.net writes: > > << Hi Dave, > The numeric interval is based on arithmetic scaling for > daily and intraday > charts, and logarithmic scaling for weekly charts. >> > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. > - -To subscribe/unsubscribe, email "majordomo@xmission.com" -In the email body, write "subscribe canslim" or -"unsubscribe canslim". Do not use quotes in your email. - ------=_NextPart_000_00B2_01C208B0.9237EC40 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2600.0" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV>Interesting point you make, Harvey. I am so conditioned to reading = the DGO=20 daily charts in arithmetic scale that I would probably find it difficult = to make=20 a permanent change to log scale. I've never been able to get the new = weekly=20 charts to scale properly on my computer without reducing the resultant = font size=20 to Lilliputian scale, so can't say that I could make a meaningful=20 comparison.</DIV> <DIV> </DIV> <DIV>Katherine</DIV> <BLOCKQUOTE=20 style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; = BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV> <DIV=20 style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: = black"><B>From:</B>=20 <A title=3Dhbrion@ieee.org href=3D"mailto:hbrion@ieee.org">Harvey = Brion</A> </DIV> <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A = title=3Dcanslim@lists.xmission.com=20 = href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= </DIV> <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Friday, May 31, 2002 2:28 = PM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] semi-log = DGO?</DIV> <DIV><BR></DIV>I remember seeing this, Katherine. WON makes a = strong=20 argument for<BR>using log scale and to me these same arguments apply = to daily=20 charts.<BR>He seems to be rationalizing linear scale for daily charts = as=20 "fine,"<BR>probably because both the online and printed product daily = charts=20 are in<BR>linear scale and it would be too costly for them to make a=20 change. It<BR>would be interesting to see what a poll of their=20 subscribers would say.<BR>-Harvey<BR><BR>Katherine Malm = wrote:<BR><BR>> Hi=20 jans, I'm getting better at this...I vaguely remembered = something<BR>> at=20 Investors.com about the arithmetic v. log scale issue, and = sure<BR>>=20 enough, here it is: Question:To correctly identify a winning = chart<BR>>=20 pattern, should we look at a logarithmic scale or an arithmetic = scale<BR>>=20 chart? A pattern may look a lot different depending on which type = of<BR>>=20 scale you use.Answer:When using a daily chart, an arithmetic = scale<BR>>=20 chart (in which the vertical axis denoting a stock's price shows = equal<BR>>=20 spacing between each unit of price) is fine. For example, a flat = base<BR>>=20 will appear as a tight formation on either the linear or the log = scale<BR>>=20 chart. More importantly, check to see that the percentage price = change<BR>>=20 between the high and the low of the base fits the parameters of = the<BR>>=20 base it portrays. In a good flat base, the stock should never = fall<BR>>=20 more than 10-15 percent below the peak in the base. In a weekly = chart,<BR>>=20 a logarithmic chart has a couple of advantages. If a stock falls = from,<BR>>=20 say, 200 to 100, the depth of the drop will look the same as one = that<BR>>=20 falls from 40 to 20. In both cases, the stock has dropped 50 = percent.<BR>>=20 Also on a log chart, you can more clearly see when a stock is = rising<BR>>=20 fast or too fast in price. If a stock rises 50 percent or more in = just<BR>>=20 a week, it will look more dramatic on a log chart than on an<BR>>=20 arithmetic chart. Such climax runs following previous big gains = often<BR>>=20 signal the stock's top.=20 --Katherine<BR>><BR>> ----- = Original=20 Message -----<BR>> From: <A=20 = href=3D"mailto:Spencer48@aol.com">Spencer48@aol.com</A><BR>> &nbs= p; =20 To: <A=20 = href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= <BR>> =20 Sent: Friday, May 31, 2002 1:16 = PM<BR>> =20 Subject: Re: [CANSLIM] semi-log=20 DGO?<BR>> =20 = Katherine:<BR>><BR>>  = ; =20 DGO really does it this way: using arithmetic=20 scales<BR>> for the Day;=20 and<BR>> semi-log for the=20 = week!?<BR>><BR>> &nb= sp; =20 It's asking those of us who analyze charts using=20 the<BR>> Canslim method=20 of<BR>> using PP. BO's, C&H and = Double=20 Bottom formations to<BR>> logically=20 evaluate<BR>> different items on the = same=20 scale. For instance, if = the<BR>> price=20 of a stock is<BR>> high, a flat base = will=20 look flat on a semi-log where it<BR>> = wouldn't in an<BR>> =20 = arithmetic.<BR>><BR>> &nbs= p; =20 Does the DGOnline method make any sense to you? =20 Tom?<BR>> =20 Anyone?<BR>><BR>> =20 jans<BR>><BR>><BR>> In a = message dated=20 5/31/2002 8:57:20 AM Eastern = Daylight<BR>> =20 Time,<BR>> <A=20 href=3D"mailto:kmalm@earthlink.net">kmalm@earthlink.net</A>=20 writes:<BR>><BR>> << = Hi=20 Dave,<BR>> The numeric interval = is=20 based on arithmetic scaling for<BR>> = daily=20 and intraday<BR>> charts, and = logarithmic=20 scaling for weekly charts.=20 >><BR>><BR>> =20 -<BR>> -To subscribe/unsubscribe, = email "<A=20 = href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>>= ; =20 -In the email body, write "subscribe canslim"=20 or<BR>> -"unsubscribe canslim". = Do not=20 use quotes in your email.<BR>><BR><BR><BR>-<BR>-To = subscribe/unsubscribe,=20 email "<A=20 = href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In= the=20 email body, write "subscribe canslim" or<BR>-"unsubscribe = canslim". Do=20 not use quotes in your email.</BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_00B2_01C208B0.9237EC40-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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