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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 ...
An earlier version was known as the Richter scale. It is a logarithmic scale: For each whole-number it rises, the amount of energy released by an earthquake increases by about 32 times.
Logarithmic price scale—also referred to as log—represents price spacing on the vertical or Y-axis dependent on the percentage of change in the underlying asset's price.