Hi Jesse. I'm not sure I really understand the value of multiplying together the share prices of each of these companies. Might you be able to explain your rationalization about why this is useful and what it potentially indicates?
Regards
TheWolfOfWST
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@gurple, I'm also curious as to what this methodology is supposed to indicate.
principaloverprinciple
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Things will get very interest when it breaks the trend line!
isosphere
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I don't get the methology of just multiplying them together without any kind of normalization, but damn if that trend doesn't seem to be holding as a good bounce area.
gurple
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I guess it means, "Hey, 'now' might be a good time to figure out which of these constituents *might* be worth using for a trade setup."
Wolgor
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@isosphere, Not sure if I'm right but I think you get a log chart instead of a linear when you just add it together.
Rookie398476049358670
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@isosphere, In fact, this is just a summation of the change percentage of the stock. Suppose today they all start at 1, and change 1 percent, or 0.01 in price, then by Taylor's expansion, (1+0.01)(1+0.01)(1+0.01)(1+0.01)(1+0.01) is approximately 1+0.01*5 = 1.05. They totally changed 5%, roughly 0.05.
brett701
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This important trend line that you speak of.... It has broken on FEB 9 and multiple other times and nothing has happened. What does this mean?
jurrecb
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Hmm, curious if it will break or bounce of
btcbackyardminer
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is it still holding that trend line? or is it starting to break?
Regards