Thanks for your responses @Gordo7 , @Cabbie & @gj0201 - much appreciated. I read the previous post you linked to Gordo and can't help but agree, however a bit of googling revealed a few discussions like this and it appears the "majority" seem to use linear scale in most situations, but there's a fair few that use the log scale charts when zoomed out for the longer term view and still others that use log as default even on short term charts as the difference is minor.
It's interesting- they are two alternate, widely used and valid views of reality which in some specific situations present a very different picture and produce very different trend lines and channels. Every now and then for example, what appears to be a false breakout from a channel in the linear reality is just a bounce off the top trend line in the log reality. Maybe this has the potential to materially affect the way a stock is traded sometimes? Perhaps knowing where this might come in to play could serve as another tool in the toolbox to help identify potential areas where price could turn back and test after breakout, anticipate breakouts, help set stops and profit taking areas etc? It may be something worth checking out similar to Cabbie's Wyckoff reverse trend lines the other day?
So I wanted to check this out, but it would be easier if you could see the trend lines from both scales on the same chart. If your default is the linear chart, then the log scale trend lines and channels would appear curved, and vice versa. But I spent a good 10 mins searching for a way to do this with no luck- and everyone knows that if you can't find something in less than 7 minutes then human kind has not thought of it yet (or possibly you used stupid search terms). As it turns out I found a way that is quick and easy, and after looking at a few charts I think this idea may actually have some legs. I know there's probably thousands of people including you who have plotted trend lines and channels from different scales on the same chart. But in my reality I had to invent this method, and as such I get to name them. Henceforth trend lines and channels from another scale chart I'll call "Alternate Reality Trend Lines" and "Alternate Reality Channels"- or AR trend lines and channels for short.
So what I did was this. To draw a trend line from the log chart on a linear chart to produce and AR trend line for example, simply switch the scale to log, draw the trend lines and channels, then trace over them with a curved line tool. (So make a straight line with the curved line tool). Switch back to linear and then you have them. You can place markers on about 5 or 6 spots on the trend line before switching back so you can tune the curve of the AR trend lines to ensure precision. Then delete all your markers and the straight trend line that was traced (which will now be floating around meaninglessly) to tidy things up. This works with Trading View but I assume other platforms as well?
So below are three linear scale charts with AR trend lines and channels drawn as the dashed curved lines for anyone interested. There's a TLS (weekly) example for a long term downtrend, and daily charts for PME and PPS for different types of shorter term movements. These aren't conclusive proof of anything, but perhaps illustrate some potential. I'm going to keep an eye on this to get a feel for where this may come in handy.
Thanks again, Rooster
Here's a live one with PPS... I was watching this after I noticed a shortening of the downward thrust, and then while checking out this scaling stuff noticed that the descending wedge looked like a downward parallel channel on the log chart, so it kept me interested. I thought it was a good illustration of how several different TA techniques can provide confirmation of each other. Anyway I got in at 36c on Thursday and so let's see if next week the TA gods smack me in the face and have a giggle.
(20min delay)