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  1. #11
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    Join Date
    Apr 2007
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    Hamilton New Zealand.
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    A log chart....
    Snow Leopard is probably correct (this time..The wide range of share price justifies the use of Log scale over that of Linear...Usually when the price is less volatile it doesn't matter which one you use as the price breaks are similar..The big effect is usually the trend line which I don't overly rely on..but each to their own..
    What does matter is how many investors in the market use log scale..If there is an overwhelming number of investors using log charts and they are all trendies then a log scale has to be the preferred chart method.
    Also investment styles ...many investors call themselves long term investors although that's debatable during exuberance/fear times, but often the tax structure forces investors to buy & hold rather than trade..
    Charting covers all term investors short medium and long..The PPH sell signal for a long term investor is currently at $5.55, a long way off..(see first chart)
    Again if you are an investor willing to hold for a considerable time, then patience during the correctional decline is either a virtue or a poison arrow..PPH is a very high growth rate yet the share price languished for a considerable time between Mr Markets' correction rallies (see the second chart).

    Also..many investors have different sell strategies..A popular sell strategy is exit when the second support is broken, as you see on the first chart the second broken support (now resistance) occurred recently at $7.90 -$8.00 area...You know this strategy is popular when it is noticeable using the trade depth function..Sometimes certain stocks have different types of investor trading so looking at the trading depth gives you a good idea of what type of investors are buying/selling

    Attachment 11797

    Last edited by Hoop; 22-07-2020 at 02:35 PM.

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