1/n
We will understand why Logarithmic charts should be used for Technical Analysis over Arithmetic charts
Traders looking to capture short-term price movement may prefer Arithmetic(linear) scale charts.
#TechnoFunda
#StockMarket
#metals
#StockMarketindia
#stocks
We will understand why Logarithmic charts should be used for Technical Analysis over Arithmetic charts
Traders looking to capture short-term price movement may prefer Arithmetic(linear) scale charts.
#TechnoFunda
#StockMarket
#metals
#StockMarketindia
#stocks
2/n
The problem with linear scale is when zoomed out to view long-term price history it can make the chart look parabolic or scary to retail investors. Commonly, when a security's price range over the period being studied is greater than 20%, a log scale chart should be used.
The problem with linear scale is when zoomed out to view long-term price history it can make the chart look parabolic or scary to retail investors. Commonly, when a security's price range over the period being studied is greater than 20%, a log scale chart should be used.
3/n
Long-term charts consisting of X years should also be plotted on the log scale. This becomes even more important when charting growth stocks. Log scale help investors visualize a nice consistent uptrend while softening chart volatility which in turn helps take out emotion.
Long-term charts consisting of X years should also be plotted on the log scale. This becomes even more important when charting growth stocks. Log scale help investors visualize a nice consistent uptrend while softening chart volatility which in turn helps take out emotion.
4/n
Let us look at Arithmetic scale chart of GPIL.
What we observe is that the top is already made at 1848 based on the parabolic move seen and that now any reversal that comes will be used by people to exit. Further downside is expected as per parabolic curve setup pattern.
Let us look at Arithmetic scale chart of GPIL.
What we observe is that the top is already made at 1848 based on the parabolic move seen and that now any reversal that comes will be used by people to exit. Further downside is expected as per parabolic curve setup pattern.
5/n
Now, let us look at the Logarithmic scale chart of GPIL.
We see a clear parallel channel pattern whose lower channel is being tested as of yesterday.
As per this pattern, the bull run will end if stock closes below this channel on weekly basis.
Difference of charts seen.
Now, let us look at the Logarithmic scale chart of GPIL.
We see a clear parallel channel pattern whose lower channel is being tested as of yesterday.
As per this pattern, the bull run will end if stock closes below this channel on weekly basis.
Difference of charts seen.
6/n
As observed from above, it is always better to use Logarithmic scale over Arithmetic scale for charts.
Though stock has corrected more than 30% from it's high, understanding commodity cycles and connecting with price trends needs to be done when investing in commodities.
As observed from above, it is always better to use Logarithmic scale over Arithmetic scale for charts.
Though stock has corrected more than 30% from it's high, understanding commodity cycles and connecting with price trends needs to be done when investing in commodities.
7/n
GPIL is showing bearish trend in Weekly charts and oversold in Daily charts. So, current inference is any further dip will lead to some buying and any upside will be sold into by short term traders who are stuck.
GPIL is showing bearish trend in Weekly charts and oversold in Daily charts. So, current inference is any further dip will lead to some buying and any upside will be sold into by short term traders who are stuck.
8/n
High of 1848 will take time to be reclaimed unless the current metal newsflow turns positive in short term.
Those who want to buy for long term will get better opportunities in GPIL.
1097.60-930-862-759 support levels should be kept in mind below Weekly 21 EMA of 1182.14
High of 1848 will take time to be reclaimed unless the current metal newsflow turns positive in short term.
Those who want to buy for long term will get better opportunities in GPIL.
1097.60-930-862-759 support levels should be kept in mind below Weekly 21 EMA of 1182.14
GPIL Ltd
Godavari Power & Ispat Ltd
#GPIL
#Fibonalysis
With concerns over metals falling this week, let us look at what is the outlook for GPIL based on technical charts.
GPIL is down 33.44% from it's high of 1848 hit 29/07/2021.
Is the upside rally over for GPIL?
Godavari Power & Ispat Ltd
#GPIL
#Fibonalysis
With concerns over metals falling this week, let us look at what is the outlook for GPIL based on technical charts.
GPIL is down 33.44% from it's high of 1848 hit 29/07/2021.
Is the upside rally over for GPIL?
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