peixotoce said:
Dear Traderji & senior TAs,
Is it better to use my chart with semi-log scale or not ?
if i use semi-log scale, is it better to use moving average exponential or arithmetic ?
When i choose one of them ?
Thanks,
Peixoto
Dear Peixoto,
In semi log scale the percentage rise/fall is more sharp to eyes.A rise from
10 to 20 is 100 % ,when viewed in Semi log scale it will be more distinct.
Regarding Simple/Exponential MA .Arithmatic gives Equal weightage to all past
data of that period,wheras Exnonential gives more weightage to today's ,yesterday's data likewise.Still to make it more clear;Semi Log scale is to be used when you want to use say Fibonnicci on chart to find the Retracement levels,but suppose you want to observe say
H & Shoulder than Arithmatic.For DMA/EMA paste one of my code in indicator builder "Ema:=C*.09+PREV*.91;
Ema;" you will find this is nothing but 21DEMA,using this code will only slow down your computer.Here from today's close 9% value is taken wheras in SMA
of 21 days today's close will be added & 1st day's close Subtracted then divided by 21. Hope now it is clear which one to use when.
Regards
Asish
