NeoMedia Technologies, Inc (NEOM)

[ASTOCKCOLLAPSE N0W]

Jonesie,

I've been meaning to ask you why you favor a linear scale over logarithmic?

Linear seems more suited for shorter time frames given the longer term propensity toward exponential movement - i.e. a $8 stock must move $0.80 for a 10% gain while a $80 stock similarly moves $8. Though the percentages are the same, on a linear scale the differences are exaggerated.

That's why NEOM's linear chart looks so goofy with the illusion of massive volatility at higher levels and flat trading at lower levels, when in reality the the volatility has remained relatively consistent. The average daily percentage move has dropped 1% to 4.5% since reaching a peak of 5.5% in mid-2005. A linear scale distorts this relative consistency.

Anyhow, just some food for thought.

Oh yeah, my "technical" reading ability increased dramatically when I finally ditched the secondary-indicator "training wheels". They can be useful when developing an automated trading system but when trading on a discretionary basis I find that they often just confuse things.

If you're interested in really polishing your skills I recommend Steve Nielson's book on Japanese Candlesticks (the title escapes me at the moment) and Dr. Alexander Elder's Trading for a Living. The latter, IMO, is a must read for anyone actively participating in stocks. The title doesn't do it justice as it is less about trading for a living and more about developing an overall trading/investment plan - from a system to psychology.

Cheers,

ASN