Thursday, 1 October 2015

ASX 200 monthly close under trend line from 2009 & 2012 lows keeps focus on 2500 by end of 2016

Log scale chart of all sessions trade for the ASX 200 shows that the market closed September below the trend line drawn from the 2009 and 2012 lows. This keeps the illustrated Elliott Wave count and scenario as the best fit for market action since the 2007 peak.

Many others are instead tracking the linear scale chart, shown below, and declare that linear scale is the only correct scale to use. In my opinion there is no universal rule about which scale to use, as one or the other will be a better fit for a given market. Log scale looks a better fit for the ASX 200 to me. By better fit, I mean allows better fitting trend channels to be drawn. Horses for courses, you can make your own mind up.

USD/JPY daily chart triangle, currently biased lower in hourly chart channel