I know (thanks to tomasz, i have asked this question before) that angle of a trendline does NOT mean anything in timeseries (Time x-axis, Price y axis). The angle will change if you change the zoom level of the chart.
But what if the number of visible bars in a chart is FIXED?
for example what if we say that there will only be 50 bars visible in the chart and hence we fix the zoom level. Will the angle of the trendline matter? Is there a way to measure the angle of a line at a fixed zoom level? Is there a way to, through AFL, fix the number of bars in a chart and then do calculations?
see pic below the angle of the white line is 45 degrees at zoom level 50 bars.
You can fix the x-axis by number of bars, but the y-axis visible is only the range at that point in time.
That will impact your angle for sure.
To be sure, you would have to change the scale to include its ATH, then the Y-axis will not rescale.
Another approach, which is mathematical, would be to measure the Rate of change as such:
Rate of change would be defined as the %change / number of bars
so, 10% change in 3 bars is a steeper angle, compared to 10% change in 10 bars.
This is mathematical and would not rely on angle in drawing sense, and therefore the zoom level also doesn't matter.
Rate of change will NOT be a reliable indicator because it will be dependent on base price and timeframe.
For example on a 10 minute chart the pattern took 10 bars to move the price by 1 % so rate of change is 1/10 = 0.1
Whereas in yearly chart the pattern took 10 bars to move the price 100% (double) so rate of change is 100/10 = 10.
The look and feel and slope of the pattern on both these chart may look the same but rate of change is very different. The angle for both these patterns should be same.
well you didn't say different TF in first post.
Even in your chart, if you change TF, the angle will change.
maybe you can work out the specifics first.
I won't post further to debate:
BUT I will give you a very important analogy.
The way OCR ( optical character recognition ) is done by ML is different to how the human eye recognizes characters.
While the result is the same, the methods of operation are fundamentally different.
so in case of price charts ARC TAN ( price movement ) / (number of bars )
(of course assuming unity scaling factor $1 == 1 bar, so one bar consumes same space as one dollar )
So obviously "angle" depends on both X and Y scaling and picking of unit in X and Y direction. The change of "price" scaling as well as "bar" scaling (timeframe) changes the ratio and changes the angle.
BOTTOM LINE: THERE ARE NO FIXED ANGLES as I explained MANY MANY TIMES.
