monday trading, page-99

BridgeBaron, I am aware of your point.

However what we are trying to capture by the use of angles is the relationship between time and price (in points), or the hypotenuse of a triangle.

If we use a semi-log chart then the relationship breaks down as the x-axis remains the same, but the y-axis changes.

A move might have been 200pts down in 55 days and the next move might be 3 times this but instead be down 476.68pts in 400 days which is exactly 3 times the value of the previous move.

If we used angles on a linear chart we would observe this.

If we used a semi-log chart then we would not.

Essentially by using angles we are using vectors and need a linear chart.