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Logarithmic price scales are better than linear price scales at showing less severe price increases or decreases. They can help you visualize how far the price must move to reach a buy or sell target.
This post offers reasons for using logarithmic scales, also called log scales, on charts and graphs. It explains when logarithmic graphs with base 2 are preferred to logarithmic graphs with base 10.
Back when I first started charting the spread of coronavirus I decided not to use a logarithmic scale. I figured that log scales were fine for communicating with other professionals, but most ...
To get a clearer view, we need to switch to logarithmic scale, which makes a 10% move in 2018 look just as big as a 10% move in 2022. It fixes the distortion created by the post-Covid exponential ...
But sharp-eyed observers will note that the chart is in log scale, not linear scale. In a regular linear scale graph -- the type of scale everyone is used to seeing on a daily basis in everything ...
Logarithmic price scales tend to show less severe price increases or decreases than linear price scales. For example, if an asset price has collapsed from $100.00 to $10.00, the distance between ...