here we have a perfect rejection/confirmation of the downtrend on a logarithmic scale (top), and a breakout to the upside of the trendline on a linear scale.
this is more of a question than an idea. haven't found anything on this so i figured i'd throw it out there on TV. the question is: which is more reliable for determining a breakout vs fakeout? i generally do everything on a logarithmic scale, because frankly, i don't care about the actual value of a price. i simply care about the relationship between that value at one point in time versus another. but as usual, markets don't care what i think.
are there studies/statistics out there on the probability of a breakout vs fakeout on linear vs logarithmic scales?
this is more of a question than an idea. haven't found anything on this so i figured i'd throw it out there on TV. the question is: which is more reliable for determining a breakout vs fakeout? i generally do everything on a logarithmic scale, because frankly, i don't care about the actual value of a price. i simply care about the relationship between that value at one point in time versus another. but as usual, markets don't care what i think.
are there studies/statistics out there on the probability of a breakout vs fakeout on linear vs logarithmic scales?
linear scale is winning 1 - 0
linear:
log: