Trend Following: A Comprehensive Guide with a Detailed Strategy Using Three Complementary Indicators
Trend Following is a trading strategy that seeks to capitalize on the momentum of financial markets by identifying and riding the existing market trends. By focusing on the direction and strength of price movements, trend followers aim to profit from both upswings...
The financial markets are constantly evolving, and as such, traders and analysts need to stay ahead of the curve. One tool that has proven to be invaluable in financial analysis is the logarithmic scale. In this detailed guide, we will explore the logarithmic scale in financial analysis and its various applications in technical indicators.
1. The Logarithmic...
First let’s begin with…
What is a trading journal?
This is a log book where you plot every trade you make with the metrics to show how your portfolio is performing and will continue to do so.
I’m going to briefly list the items you’ll need to track your trading performance.
25 Items to plot in your trading journal…
The trade No.
The market traded...
There's a semi-wide-spread snake oil "wisdom" in near-quant circles that you need to use log-charts/log-scale/log-transform all the time.
No, you need to use it only when the range of the data been processed exceeds one order of magnitude (data maximum at least 10 times data minimum). Before dat, no-no! Please, don't stabilize the variance unless it'll asks you...
In this post, I will explain what jumping S-curves means and how you can identify potential S-curves before they jump .
First, let's begin with the chart above (also copied below).
This is a yearly chart of McKesson Corporation (MCK), a medical supplies company.
As you can see in the chart below, this stock has been soaring over the past year despite most...
In this post, I will explain how traders can maximize their use of log scale on Trading View. I will give examples of when you should use log scale on your charts and when you should not, as well as provide an in-depth analysis of its use cases, including how you can actually visualize the entire lifecycle of an asset using the log scale.
In the chart above, I...
There are two main reasons to use logarithmic scales in charts and graphs.
The first is to respond to skewness towards large values, cases in which one or a few points are much larger than the bulk of the data.
The second is to show percent change or multiplicative factors.
In this tutorial, we will learn how to use the "Auto Trendline & Breakout Alert (Linear / Log)" indicator.
Note: You can find it in the scripts section of my profile
Auto Trendline & Breakout Alert(Linear / Log) Full-Version by BobRivera990
Overall Introduction
This indicator is the best tool for breakout traders.
Drawing and evaluating the trend lines of...
I've been looking for the correct equation for a straight line on Semi-logarithmic scale for some time. The base equation is as follows:
log y = mx + log k
m = slope of line = (log y1 - log y0) / (x1 - x0)
k = y-intercept: value of y where line crosses the x = 0 axis
While this equation is absolutely correct, the result of plotting it on logarithmic scale was a...
Hello, dear subscribers!
Today we are going to examine very simple and intersting instrument which is applicable for the global price movement analysis.
The logarithm growth curve is based on Fibonacchi retracement levels. As it is known the Fib retracement based on swing high and low levels. But in case of growth curve we use the logarithm scale to take in...
Demonstrating the big idea: That straight lines in log-space form exponential curves.
This property of the log chart is useful for examining assets with exponential growth (like high-growth stocks, cryptos, etc).
Because the log scale asymptotically approaches the absolute scale as y slice decreases, this indicator is really applicable to any time scale.
This...
In this post, I'll be shedding light on the difference between arithmetic and logarithmic scale charts, and how to best use both charts to your advantage.
Arithmetic Chart
- The chart on the left is a chart that uses the arithmetic scale
- This is the chart most common to us all, and one that's easiest for traders and investors to comprehend
- An arithmetic...
Hi friends,
Please view this video that explains how to view your volume profile on a logarithmic scale!
I have thrown in an extra on how to view total value of trades for your time-stamp!
Enjoy!
Looking at the BTCUSD logarithmic scale changes the perspective quite a bit. This view explains why it turned downwards when we all thought it already broke through the channel. Which it did... in the linear view. When doing a technical analysis, it's a good idea to sometimes take a step back and make sure you've looked at it from all angles. And that's my...
Distribution of Information Over Time.
This is Logarithmic Curve describes how information distributes between people over time (also describes population of rabbits).
Zero point (0) — Point where Somebody knows the information
Mid point — Point where Lot of People knows the information
Top point (1) — Point where Everybody knows the information
