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re: Gurus - Where is the market going?

Posted on 2/10/10 at 5:11 pm to
Posted by LSURussian
Member since Feb 2005
127112 posts
Posted on 2/10/10 at 5:11 pm to
quote:

Here's a scenario


Here's another scenario.

Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 2/10/10 at 5:21 pm to
I think the change in the scale is a little self serving there ROOSKIE.
Posted by LSURussian
Member since Feb 2005
127112 posts
Posted on 2/10/10 at 5:22 pm to
I didn't change any scale. I copied and pasted the chart just as I found it on the Yahoo! finance page.
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 2/10/10 at 5:25 pm to
quote:

I didn't change any scale. I copied and pasted the chart just as I found it on the Yahoo! finance page.



I didn't say you did, but that doesn't mean it's not self serving.
Posted by AUFanInSoCal
Orange County
Member since Nov 2007
1616 posts
Posted on 2/10/10 at 5:28 pm to
It's the same scenario as the one I posted but with a larger time scale.
Posted by LSURussian
Member since Feb 2005
127112 posts
Posted on 2/10/10 at 5:31 pm to
quote:

that doesn't mean it's not self serving.

How am I serving myself with that chart?
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 2/10/10 at 10:48 pm to
quote:

How am I serving myself with that chart?



The interval from 0-5000 is about 10x as big as the interval from 5000-15000, which minimizes the appearance of the recent skull dragging the market has taken, while magnifying the relatively steady incline in the earlier years.

... I have been way off with a few of the things that I've sad in the past few weeks, but I'm pretty sure I'm right on this one.
Posted by threesheets
Member since Oct 2007
423 posts
Posted on 2/11/10 at 11:12 am to
.
This post was edited on 2/11/10 at 11:13 am
Posted by RedStickBR
Member since Sep 2009
14577 posts
Posted on 2/11/10 at 11:13 am to
That's because that chart is on a logarithmic scale as opposed to a linear scale.

On a linear scale, 1 dollar and 2 dollars would have the same distance between them as 2 dollars and 3 dollars.

On a logarithmic scale, the intervals are based off of percentage. So 1 dollar and 2 dollars (100% gain from 1 to 2) would have the same distance between them as 2 dollars and 4 dollars (100% gain from 2 to 4).
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 2/11/10 at 12:44 pm to
quote:

That's because that chart is on a logarithmic scale as opposed to a linear scale.

On a linear scale, 1 dollar and 2 dollars would have the same distance between them as 2 dollars and 3 dollars.

On a logarithmic scale, the intervals are based off of percentage. So 1 dollar and 2 dollars (100% gain from 1 to 2) would have the same distance between them as 2 dollars and 4 dollars (100% gain from 2 to 4).


Thanks for the explanation. I didn't see that at all. I do see why that scale is a better representation of the market now.
Posted by RedStickBR
Member since Sep 2009
14577 posts
Posted on 2/11/10 at 12:47 pm to
Yup. I don't know of a single chartist who uses linear.
Posted by LSURussian
Member since Feb 2005
127112 posts
Posted on 2/11/10 at 12:47 pm to







Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 2/11/10 at 12:58 pm to
quote:

LSURussian

quote:

RedStickBR


Posted by LSURussian
Member since Feb 2005
127112 posts
Posted on 2/11/10 at 1:04 pm to
Posted by RedStickBR
Member since Sep 2009
14577 posts
Posted on 2/11/10 at 1:05 pm to
Didn't Russian learn everything he knows from Rivers?
Posted by LSURussian
Member since Feb 2005
127112 posts
Posted on 2/11/10 at 1:26 pm to
Pfffttt! I've forgotten more than Rivers knows!

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