Excellent bullish chart. I have one question: It appears that you are using an arithmetic price scale instead of Log. Do you find that Trendlines work well with arithmetic?
NEO_Trading
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@Rickcttg, Hi really good question. I have been struggling for so long about this. At the end I have found that the trendlines are working better in arithm. scale. It depends a lot of the timeframe and the magnitude order of the price, if you are drawing a trendline for a price that is going from 1$ to 1000$ the artihm. it will not fix so good, in this case you can try to use better the log. It is not an easy matter for me that I am trading mid/short term trends it has not a big impact but for long term it has.
Also at the end thinking about the implications of logarithmic and arithm. (linear) scale, it has more sense to use the arithm. for drawing lines at the end it is a linear relation. With the logarithmic at the end it is converting a line to a parable. In fact if you plot a chart with a long trend going from 1$ to 1000$ in arithm. scale you will see that at the end the trend is parabolic not a line (for example TSLA).
So summarizing for mid/short term I use linear, for assessing a long term trend I use log.
What is your opinion about this?
Rickcttg
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@natxobaile, Thank you for the detailed answer. I agree with your statement regarding mid/short term vs long term. I typically like using log to look at price changes over time to keep everything in perspective and I look at a lot of charts so I don't like flipping back and forth between the two options (probably lazy on my part). I also find that most trendlines (but not all) are more like trendline regions and not perfect lines. This makes both option valid in most cases. On a side note, I found an interesting TL on GOOG that dates back to 2019-Apr-29 that has been crossed recently. There is also a recent gap up similar to the gap down at the start of the TL. Do you think the gap will fill or Price break out higher on a rebound from this long term TL? Just curious.
NEO_Trading
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Sorry but I can't help you with this, I base my analysis on price & volume action, and I try not to forecast movements, first I let the market to show me the cards and then I take action that's my approach. Looking at google I can tell you that it is so extended and don't like this type of gap islands, specially when I see volume spikes inside of it without any further price movement, but I would rather observe the relevant supports and see what they are doing on them...