Alchemist I have small confusion.

When I look at log chart, I don't make anything out of it. .



Now if i look at linear chart, this was accident as i always look at Log charts only...you can see a clear channel decline.



Can you help me understand why the decline in Linear charts is predictable but in log it makes no sense.

Does this means for European securities, we need to look linear charts!..

It is quite possible that a few stocks exhibit trends more clearly on a normal scale.

I can't think of any logical reason for this except that maybe traders in this market are using normal-scale....

It is always better to use log-scale for long-term charts.

Log-scale gives a much better picture of what's happening with a stock.

If one looks at the normal scale chart of RBS, he may think that the stock is in a steady decline.

However, that is not the case.

The rate of fall has accelerated in the recent weeks and this is more evident in the log-scale chart.

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Looks like traders are looking at linear scale.

RBS bought by UK GOVT (Nationalized), CEO fired....

http://www.bloomberg.com/apps/news?p...zRw&refer=home

Now the ride up right till 170-180!...Let's see as a learning!

The stock is actually down.

The government will be getting preference shares and there will be substantial dilution.

A lot of value has been destroyed for the current shareholder.

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RBS reports Loss of 42 Billion! Price halfs today! Govt increases its stake to 70%

http://www.bloomberg.com/apps/news?p...2Xc&refer=home

It was all over the charts. Price broke through a spread triple bottom! Check the chart I posted on 15 Jan.

http://man4urheart.blogspot.com/2009...-breakout.html