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.
Add to My Watchlist
What is My Watchlist?
 (20min delay)
|
|||||
|
Last
8,677.2 |
Change
9.000(0.10%) |
Mkt cap ! n/a | |||
| Open | High | Low |
| 8,668.2 | 8,714.6 | 8,652.6 |
| XJO (ASX) Chart |