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ls7550

11/25/08 12:34 PM

#28975 RE: lionhead0 #28968

Ah-ha Tim, you-have-fallen-into-my-trap, yo-ho-ho.

A Ladder within a ladder is no different to laddering the complete ladder range using similar/same linear step spacings as per the inner ladder.

Using LRS slope lines for example, rotated to the horizontal (I've not done a particularly great job in the following chart, but you get the idea) looks something like



The time-axis to each individual price point is distorted, sort of time shifted, and the stairs up/elevator down normal stock price motion effect becomes more of a stairs both up and down.

Adjusting a horizontal ladder to slope lines is little more than a form of time base distortion. Leaving the steps horizontal avoids the need to perform any TA (providing the ladder steps are reasonably closely spaced) and/or ladder rebasing. Time diversification does the work.