I guess it taught me a lesson about perspectives. With the occasional exception, mainly when I was looking at longer term indices, I rarely used log charts because coming from a medium term trading background it never occurred to me to do so.
I have drawn up a separate chart which taking into account what I think should have happened (red downleg) with a more typical behaviour pattern and to me it should have retraced after the big upleg between August 2014 and end of January 2015 to somewhere between 30 and 40 cents (-50% and - 61.8% respectively) .
However hype steamrolled reality and there was a -38.2% retrace to 49 cents and it took off again from there, which wasn't justified, to hit the 117 cent all time high which was never going to gel. It took until September 2016 to burn off that final upleg back to the -38.2% level (see amber arrow). A lot of people were hurt by that and I think is the root cause of the selling into any news etc.
All ancient history but a lesson learnt the hard way by many.
Weekly Log Chart
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