ABSTRACT
Many of the stocks that show a typical accelerating curves in their advance (Major) Trends on arithmetic paper produce straight trends on a logarithmic scale. As a consequence, their logarithmic Major Trendlines are broken more quickly and usually at a higher price level, when at last their trends do top out and turn down. Semilogarithmic scaling will correct, in many cases, for the Widening Channel effect in Bull Trends, but then we run into the opposite tendency in Primary Bear Markets, and for that, neither type of scaling will compensate. The broad Averages or Indexes, in fact, produce more regular trends and, in consequence, more exactly applicable trendlines. Practically everything stated in the preceding chapter regarding Intermediate Trendline development in individual stocks applies, as well, to the various Averages. The broad Averages or Indexes, in fact, produce more regular trends and, in consequence, more exactly applicable trendlines.
