Locking the price/time scale ratio

   Many analysis methods, such as Gann, rely heavily on the relationship
between price and time. When charts were drawn by hand on grid paper,
it was easy to fix the price/time relationship (eg 1 grid box per week,
and 1 grid box per dollar).

However, most charting applications will tend to scale the price axis
and the time axis automatically and independantly, which can hinder
analysis that relies on the price/time relationship.

BullCharts has a option called "Lock scale ratio", located in the price
axis properties. This will ensure that the horizontal spacing between
each bar on the chart is kept the same as the vertical spacing for the
specified number of dollars on the price axis.

For example, the chart below has been set up so that 1 day on the time
axis is the same size as 10 cents on the price axis. In this case the
grid lines are also shown to be exactly square (though this is not
always the case).

For a detailed discussion of the advantages and use of this feature, check out the whitepaper available on the BullCharts website.

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Peter Members Profile Send Private Message Find Members Posts Visit Members Homepage Add to Buddy List BullCharts Staff Joined: 09 Sep 2004 Location: Australia Posts: 241	Post Options Post Reply Quote Peter Report Post Quote Reply Topic: Locking the price/time scale ratio Posted: 08 Dec 2004 at 10:23am
	Many analysis methods, such as Gann, rely heavily on the relationship between price and time. When charts were drawn by hand on grid paper, it was easy to fix the price/time relationship (eg 1 grid box per week, and 1 grid box per dollar). However, most charting applications will tend to scale the price axis and the time axis automatically and independantly, which can hinder analysis that relies on the price/time relationship. BullCharts has a option called "Lock scale ratio", located in the price axis properties. This will ensure that the horizontal spacing between each bar on the chart is kept the same as the vertical spacing for the specified number of dollars on the price axis. For example, the chart below has been set up so that 1 day on the time axis is the same size as 10 cents on the price axis. In this case the grid lines are also shown to be exactly square (though this is not always the case). For a detailed discussion of the advantages and use of this feature, check out the whitepaper available on the BullCharts website.