Percentage Scaling?

G

GotherL

Wouldn't it be better to always use charts in percentage scaling over price scaling formats? (Esp for daytraders.) You wanna know how much a stock moves by %, not by $ amount. A $1 increase on a stock would mean little if the price was $500. Yet, it can be misleading since regardless of how much % it actually moves it sees $1 as significant and form long green candlesticks. This can lead to over-hyped TA trading mistakes imo.
 
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For charting TA, trendlines etc. absolute price can have significance (self-reinforcing).
For risk-adjusted comparisons and relative change logscale may make more sense (relativity).
It's better to spot why yourself and adjust accordingly, without resorting to magical thinking.
 
Use what you like and don't flip around so you learn with all your efforts the same. People who constantly "try" something else seldom make it cause they never get good using one type of charting.

What makes sense to you is all that matters, but it is good to know what the masses use so you don't do as they do but wait for their mistakes.
 
Handle123 said:
Use what you like and don't flip around so you learn with all your efforts the same. People who constantly "try" something else seldom make it cause they never get good using one type of charting.

What makes sense to you is all that matters, but it is good to know what the masses use so you don't do as they do but wait for their mistakes.
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I went back to price scaling. Figured it would take me a while to get use to it.
 
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