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Jim Dean

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Joined: 3/13/2006
Location: L'ville, GA

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Subject : RE: Divergence from an index
Posted : 1/5/2015 1:27 PM
Post #23275 - In reply to #23274

Unfortunately that divergence is an "optical illusion". The scale of the candles is auto-adjusted based in the time period in view, and the scale of the orange line is also auto-adjusted, independently of the candle scale.

To see this, I suspect that if you adjust the view (using the sliders not by dragging the edges of the chart with the mouse) so that Oct is on the far right, and May is on the far left (ie panned right and zoomed), then the Orange line will appear to shift upwards and accordion out vertically, relative to the candles.

That is, OT determines the highest and lowest values of the candles within the desired date view range, then sets the price axis to just barely contain that high low range. It does the same thing independently for the Orange line (without showing the Orange line scale).

So, the relative positioning of the candles vs the line will vary depending on the date range selected. What you are seeing is an effect of auto-scaling.

[Edited by Jim Dean on 1/5/2015 1:29 PM]

Deleting message 23275 : RE: Divergence from an index


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