You are using bitcoin charts the wrong way!!!

carlozharz

newbie

Activity: 32

Merit: 0

Quote from: Hydrogen on May 18, 2018, 05:21:53 PM

Quote from: cryptohoodz on May 15, 2018, 05:06:46 AM

For instance have a look at BTC with arithmetic scale:
https://blockchain.info/nl/charts/market-price?timespan=2years

We see a clear bull run end of 2017, followed by a bearish downfall.

And here with log scale:
https://blockchain.info/nl/charts/market-price?timespan=2years&scale=1

However by using the log scale, it looks like btc is following a pretty consistent trend.

What are your thoughts? Is the traditional arithmetic/linear way to view btc prices useless and should we all adopt log scales? Or does using the arithmetic scale have its use?

I would be interested to know how logarithmic scale chart advocates derive useful market data utilizing visual cues. How do they predict future market trends? There doesn't appear to be much real world application to it. It might be good for long term HODL to know up trending price movements override price downtrends resulting in faint upwards movement which suggests price stability and gains. Other than that I don't see that utilization of log scale presents advantages over normal charts.

Log scale would seem to filter out many useful visual cues and data, rather than introduce new data or perspectives which could be useful. I think its a misdirection thing where people switch to log to fool people into thinking it means markets are still rising despite recent downtrends.

I am also very curious, how do they know the booster of logarithmic log scales and obtain market data? because I do not understand log scale calculations, I am more comfortable using arithmetic and I like to pay attention to price downtrend, I appreciate your suggestions and efforts, but everyone has its own way more enjoyable.

Daseento

jr. member

Activity: 206

Merit: 2

With my experience I think both have been inadequate in making trade decisions this year. Trend analysis have not being a good indicator of price movements and the market is still very volatile. Traders should focus more on news either positive or negative, these have bigger influence than just chart.

stompix

legendary

Activity: 2912

Merit: 6403

Blackjack.fun

Quote from: cryptohoodz on May 15, 2018, 05:06:46 AM

What are your thoughts? Is the traditional arithmetic/linear way to view btc prices useless and should we all adopt log scales? Or does using the arithmetic scale have its use?

I've always thought the opposite, I have the impression that the log scale is always used just to hide the obvious crash.

The fact is we're experiencing a bear market, since December last year we're been down 60%, showing a fancy log graph to a person who bought at the peak won't change the thing that he is down 12000$ per coin.

Take a look at the all time graph:
https://blockchain.info/nl/charts/market-price?timespan=all&scale=1
and imagine the line falling from 100 000 to 10 000 during this period. Nothing spectacular, right? Even the fall from 32 to 2 would look more abrupt.
Although it would mean 1.5 trillions wiped out compared to a less than a hundred millions Grin

.

Hydrogen

legendary

Activity: 2562

Merit: 1441

Quote from: cryptohoodz on May 15, 2018, 05:06:46 AM

For instance have a look at BTC with arithmetic scale:
https://blockchain.info/nl/charts/market-price?timespan=2years

We see a clear bull run end of 2017, followed by a bearish downfall.

And here with log scale:
https://blockchain.info/nl/charts/market-price?timespan=2years&scale=1

However by using the log scale, it looks like btc is following a pretty consistent trend.

What are your thoughts? Is the traditional arithmetic/linear way to view btc prices useless and should we all adopt log scales? Or does using the arithmetic scale have its use?

I would be interested to know how logarithmic scale chart advocates derive useful market data utilizing visual cues. How do they predict future market trends? There doesn't appear to be much real world application to it. It might be good for long term HODL to know up trending price movements override price downtrends resulting in faint upwards movement which suggests price stability and gains. Other than that I don't see that utilization of log scale presents advantages over normal charts.

Log scale would seem to filter out many useful visual cues and data, rather than introduce new data or perspectives which could be useful. I think its a misdirection thing where people switch to log to fool people into thinking it means markets are still rising despite recent downtrends.

hugeblack

legendary

Activity: 2702

Merit: 4002

Quote from: cryptohoodz on May 15, 2018, 05:06:46 AM

Is the traditional arithmetic/linear way to view btc prices useless and should we all adopt log scales? Or does using the arithmetic scale have its use?

Each method has advantages and disadvantages but generally is a simple way to display data.
I do not recommend using blockchain.info scheme when doing business, but using more accurate charts such as https://cryptowat.ch/markets/bitfinex/btc/usd
Also just looking at the chart and observing the rise and fall is not a good plan but rather follow patterns like Bullish Patterns(going up and going down) and Reversal Patterns.
for more read http://www.bitcointradingsites.net/technical-analysis-bitcoin-chart-patterns/

DooMAD

legendary

Activity: 3948

Merit: 3191

Leave no FUD unchallenged

But it's not an exaggeration when the fiat prices really are that volatile. Obscuring the peaks and dips with a logarithmic chart doesn't change the fact that there were some huge swings in prices. I'm sure both scales have their uses, but I wouldn't say the primary use of logarithmic is to obfuscate events as they happened and claim that the price is more stable than it appears.

cryptohoodz

jr. member

Activity: 91

Merit: 5

Ok guys, let's have a good discussion.
Most people view bitcoin charts with arithmetic (linear)
scales. However, there is strong critique from some people that arithmetic charts should not be used; some people claim that
arithmetic scales improperly exaggerate signals at the top end of the axis and *hide valuable information* at the lower end of the function axis.
They claim, log(aritmic) scales should be used.

For instance have a look at BTC with arithmetic scale:
https://blockchain.info/nl/charts/market-price?timespan=2years

We see a clear bull run end of 2017, followed by a bearish downfall.

And here with log scale:
https://blockchain.info/nl/charts/market-price?timespan=2years&scale=1

However by using the log scale, it looks like btc is following a pretty consistent trend.

What are your thoughts? Is the traditional arithmetic/linear way to view btc prices useless and should we all adopt log scales? Or does using the arithmetic scale have its use?

Topic: You are using bitcoin charts the wrong way!!! (Read 175 times)