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Re: RCKS post# 38380

Tuesday, 05/19/2009 3:52:58 PM

Tuesday, May 19, 2009 3:52:58 PM

Post# of 51799
Your eye sees the rise / run of the chart.

As an example, on a linear chart, 3 consecutive 100% moves look 'different' than on a log chart.

Think about the magic of compound interest, or the slippage of a 3x fund reset daily. Same problem. An easy way the see the difference is to go look at $spx monthly for 20 years of so. Look at the scale, and toggle log scale

http://stockcharts.com/c-sc/sc?s=$SPX&p=M&st=1900-01-01&i=p77008456337&a=130854757&r=7720

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