Long Term Trendline for XAO

Hi All,

I'm getting my head around charting - for those more experienced with charts (Tropo?? and others), am I right in thinking that the two trend lines I have drawn on this chart correctly suggest we dont hit 7000 again until about 2017? Or have I got the linear vs log thing wrong?

It sounds wrong, but then again it took the 87 crash 6 years to reach new highs (after first rallying strongly), and it '29 it took 25 or so years!

 

If you want to analyse long term trend use weekly or monthly chart.
There are some approaches which define trend line as a combination of time and price.
If you are interested in it read “Turning Point Analysis in Price and Time” by Joe Duffy.

 

Ok I'll look into that, but in the interim is my assertion correct?

Tim

 

It seems that you draw trend line from incorrect spot.
In this case I would draw line from the low (17 Nov 87), using a weekly chart.
Daily chart is good for short term analysis only.

 

Yeh tried that but I dont know what I am doing yet - more to learn....