scale

Submitted by Ands on Sat, 2006-03-11 13:13.

Which scale do you use with Fibonacci (arithmetic , semi-log) ? Why ? Best Diet Pill

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arithmetic vs. semi-log

mtntgr | Mon, 2006-07-24 11:37

My understanding, is the following-

semi-log is more appropriate for Investors
It shows the relative importance of a price move.
e.g.- a $3 move on a $1000 stcok is not a very good ROI

arithmetic is more appropriate for Traders.
A $3 move is a $3 move, and is relevant to the risk (stop-loss), not the total cost per share...

Hope this is relevant. ;-)

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Good question.

administrator | Mon, 2006-03-13 22:03

Good question.

I did a little research and the general advice is basically that novice traders should stick with linear scale and professionals may incorporate semi-log one as well. No real explanations or examples beyond that.

I only use linear scale because my brain finds it easier to comprehend. That's the only reason I have, I guess.

Regards.

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