[TA] BTC - The importance of logarithmic charts for long term analyses

in bitcoin •  10 months ago 

Trend 2018 1.pngTrend 2014 2018 Zoom out.png

Link of my tradingview post : https://www.tradingview.com/chart/BTCUSD/Q2JFizlL-The-importance-of-logarithmic-charts-for-long-term-analyses/

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)

 

 

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