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Jimmy Snowden wrote:
> Hey Jack,
>
> How bout BARS. Not the ones you find me in but the bars on the chart.
> Each bar is a unit. Now on a chart you can make them further apart or
> closer together but if you just use bars in a system you get one
> single unit per bar.
>
> bar1 1050 bar2 1051 bar3 1055
>
> So rise over run for bar1 to bar2 is (1051-1050)/1 or a rise of one
> over a run of one. For bar1 to bar3 it is (1055-1050)/2. Rise of 5
> over run of two. There is the two dimensions.
You are forgetting the high and the low.
Imagine the first bar having a low of 900 and a high of 1300
the second will have high an dlow of 1025 1075
the last 1040 1060
This will give you a chart wich will be very high because of
the first bar. The slope will probably flat because the 1050
1051 and 1055 are all "in the middle"
Now imagine the first bar having a low of 900 but a high of
1060. The second bar 1045 - 1065 and the last 1045
1080
This will most likely influence your slope because this time
the 3 points are still close toghether but in the beginning of
the chart you have a very low point. With only 3 points
the difference will be very small i guess but if you take an
Moving Average of 30 day's it becomes a big difference
what the hight and lows on that chart are. Also, if you have
an extreme 30 day's back, the next day, when that day
drops of and the new day comes, it will change your
chart and also your slope.
Don't know if this is all true mathematicaly but it's the reason
why i also think slope is not usable.
hope you understand now with my effort to explain :-)
greetigns
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