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Charting

Linear and Logarithmic Price Scales

On a linear scale equal distances mean equal dollars; on a logarithmic scale they mean equal percentages. Over long spans the two produce genuinely different pictures.

Intermediate5 min read
Charting

Adjusted and Unadjusted Prices

Historical prices are routinely restated so that splits and dividends do not appear as real moves. This is correct, and it means the chart does not show what the stock actually cost.

Intermediate5 min read
Charting

Extended-Hours Data on a Chart

Whether a chart includes premarket and after-hours trading changes its bars, its gaps and every indicator computed from them.

Intermediate4 min read
Charting

Chart Layouts and Saved Templates

A layout is a saved way of looking. Fixing it in advance is what makes comparisons across securities and across time meaningful.

Intermediate4 min read
Charting

Bar Replay and Reviewing Your Own Decisions

Stepping through a chart bar by bar, with the future hidden. It is the only charting tool that addresses hindsight directly.

Intermediate3 min read
Charting

Comparison Overlays and Ratio Charts

Plotting two securities together, or dividing one by the other. The second is more informative and is used far less.

Intermediate3 min read
Charting

Workspaces and Comparing Several Securities

Several charts on one screen. The value comes from them being configured identically, which is the only thing that makes the comparison real.

Intermediate3 min read
Charting

Reading Someone Else's Chart

A published chart carries a set of choices that are rarely stated. Establishing them is the first step in reading it, and most of them change what it appears to say.

Intermediate3 min read
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