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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 ...
There is disagreement on the proper way to label logarithmic scales in charts and graphs, especially when the base is not 10. This post shows several alternative ways of labeling log scales ...
The second finding, however, is the key weakness of a log chart: people have a hard time interpreting the scale. In the log chart, the final dot looks like it’s at around 60-70,000 deaths or so.
The top chart is a linear scale, the bottom chart a logarithmic one. The chart clearly shows that AAPL was a superb investment over this period.
The data look very different when plotted on what is called a logarithmic scale. In a typical graph, values on the (vertical) y-axis are plotted linearly: 1, 2, 3, and so on, or 10, 20, 30, or the ...
Logarithmic Price Scale vs. Linear Price Scale: An Overview . The interpretation of a stock chart can vary among different traders depending on the type of price scale used when viewing the data.