Thursday, February 21, 2008
How to read the Spreadsheet Graphs (part 1) Where the Graph elements come from - How they relate to features on the Candlestick charts.
You can see here above and below the "real data" from a candlestick chart, and the Spreadsheet graph, mathematically derived from it. Note the values of Top and Bottom on each chart, which in this case have values for the $NDX of 2141.08 and 1693.06, respectively. Note also the light blue and yellow trendlines emanate from the Top and Bottom of the previous swing, they are mapped from the "real" chart to the mathematically derived Spreadsheet chart in the same relationship. No, they are not really straight as I have drawn them on the Candlestick chart, they're really curved, I only made them look straight on the Candlestick chart for simplicity of representation.