The importance of logarithmic charts for long term analyses

Nov 25, 2018

When it comes to trend analysis, one of my favorite tools is Andrews' Pitchfork which tends to give really good insight on the state of the trend.

I have to admit I had lots of trouble dealing with long term analysis of cryptocurrencies using pitchforks until I tried to display the charts in logarithmic scales.

When you think about it, it totally makes sense to use logarithmic scales for cryptocurrencies that are exposed to exponential moves on the upside or on the downside especially when you study long term charts.

As you can see, results I obtain with pitchforks applied to logarithmic charts look pretty consistent no matter what the price move is (upward, downward, correction, trend)

Nov 25, 2018

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Here is another pitchfork I am closely watching for this current downtrend.

Nov 25, 2018

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I have found that such analysis is even more precise when applied to the whole crypto marketcap

Nov 25, 2018

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Nov 28, 2018

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Even more convinced of logarithmic charts