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Long Term Trendline for XAO

Discussion in 'Shares' started by Tim, 29th Sep, 2009.

  1. Tim

    Tim Well-Known Member

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    Hi All,

    I'm getting my head around charting - for those more experienced with charts (Tropo?? and others), am I right in thinking that the two trend lines I have drawn on this chart correctly suggest we dont hit 7000 again until about 2017? Or have I got the linear vs log thing wrong?

    It sounds wrong, but then again it took the 87 crash 6 years to reach new highs (after first rallying strongly), and it '29 it took 25 or so years!
     

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  2. Tropo

    Tropo Well-Known Member

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    If you want to analyse long term trend use weekly or monthly chart.
    There are some approaches which define trend line as a combination of time and price.
    If you are interested in it read “Turning Point Analysis in Price and Time” by Joe Duffy.
     
  3. Tim

    Tim Well-Known Member

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    Ok I'll look into that, but in the interim is my assertion correct?

    Tim
     
  4. Tropo

    Tropo Well-Known Member

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    It seems that you draw trend line from incorrect spot.
    In this case I would draw line from the low (17 Nov 87), using a weekly chart.
    Daily chart is good for short term analysis only.
     
  5. Tim

    Tim Well-Known Member

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    Yeh tried that but I dont know what I am doing yet - more to learn....