I just wanted to clarify this thing about logarithmic lines and supports, that I've been seeing lately in many charts.
Mathematically speaking, when a line is drawn in the log scale it actually power law, that correspond to a parabolic line in the linear representation. The fact that when a line is drawn in TradingView in the log scale is also a line in the linear scale, is because the line is only defined by the two end point. And then, why they seem to be in different positions you may ask? The reason is twofold:
1. if you draw the line in linear scale, you have the same precision at all price level to pin point the ends of the line. When you pass then to log scale, lower price values are more spaced than higher one, giving the impression of more tight end point at the higher price end.
2. Conversely, if the line is drawn in the log scale, one have more resolution to pin point the lower edge, and less for the higher edge. Also, depending on the snapping algorithm when clicking a point of the grid, a price or another is selected. Specially critical for the higher price end of the line.
I invite you to do a small test. Set log scale in daily BTC/USD chart and draw a line from the bottom in 2017.03.25 to the bottom in 2018.02.05. It seems like a nice support line that was almost touched on the 2017.07.16. Now switch back to linear scale. Now, this line crosses the candles, and is no longer resembling any support as before. The fact is that when drawing a line in the log scale, you are actually drawing a power law. A parabolic line if you may.
Therefore, I would not trust any analysis that claims is using support lines drawn in one scale, and using to draw conclusion in the other scale.
Davblitz
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@hiano, log scale is preferred in general for all trading. Of course they are different, thanks for pointing out the obvious
damdamm
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Excavo my friend do not be bear anymore please. And everything will start growing immediatelly ;)
AlexFelix
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Clean chart as I like. Congrats!
People see these tools on tradingview and think that they have to apply all of them at once on the chart. If you turn their chart upside donw you'll have the same result.
My opinio is that we go to 4500.
davidtrading50
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Excavo, on the 3rd chart you wrote logarithmic support line 2 for the red line but it's actually the support line on the linear scale. .
For those who are wondering why this line touch only one point on the first chart. It is what you've got when you switch to log chart then.