Thread :

Logarithmic v/s Linear scale chart.

Tried to capture the most important (but most ignored) concept in simplest language.

For many people, this is going to be an eye opener.

U may share this thread so that it can reach to maximum people of our traders community.

Story :

Assume that you have been recruited as an Engineer in 1990 in XYZ company with salary of 4 k.

Next year (i.e. 1991) you got 20% salary hike and now your salary is 4k + 20% % rise = 4.8K.

You got extremely happy due to salary increment of 800 INR.

Now after 30 years in 2021, Your salary is 1.2 lac and today your boss has approved salary hike of whooping 800 INR.

But wait, the strange thing is, You are not happy today.

Bt Why??

The reason is simple.

Hike of 800 INR in 1991 was 20% of salary and the same amount now is less than 1% of current salary.

I hope you got my point.

This is where the "Log" chart comes into the picture.

Log chart depicts the price (Y axis of chart) with unit spaced in percentage terms.

Means the distance between 1-100 is bigger than 1100-1200.

While in normal chart the distance between numbers/unit is uniform.

linear chart treats 800 INR in same way irrespective of year.

Thread :

#asianpaints (Weekly)

- A stock moving with a healthy momentum and reasonably good trajectory.

- I assume that It may come down to touch it's primary support trend line as it did in the past.

-If it do so, It will be a "must buy" opportunity.

Tip:
a) 30°-45° inclined trend line is considered sustainable.
b) Steeper trend line angle can not sustain for a long period of time.
c) Exceptions are always there.
d) To beginners : Explore more related to trend line inclination angle and relate this with above chart.

#TATAMOTORS (TM) Analysis in weekly and daily time frame chart:

In this thread I have tried to capture,

a) How is journey of @TataMotors till date
b) What are the possibilities ahead
c) The possible trade plan with logic

What weekly chart is conveying :

a) Stock is in pure downtrend as it is making lower high (LH) and lower low (LL).
To understand HH HL LL LH, read #Dowtheory and refer tweets of @Rishikesh_ADX & @Jitendra_stock .(also watch @elearnmarkets F2F video of @Rishikesh_ADX )

b) As per weekly chart, to make the higher high (HH), Stock has to cross the level 200 and then when it retrace (pull back), Stock should not fall below 69. (To understand pullback, refer tweets of @sanstocktrader )

Now look @ #Tatamotors daily:

a) Immediate support is @ 150.
b) Immediate resistance is @ 198-200. (as we discussed in weekly chart analysis)
If it manage to cross 200, it will form it's first higher high (HH) on weekly tf.
c) If it manage to cross 200, then 240 is on the card

Possibilities ahead :

a) It may trade in channel before it make the HH in weekly TF chart.

In this case we can buy at support and sell at resistance.

Support is 157 & resistance is 200.
i.e 27% target from buy level)

Refer image.