Linear Vs. Logarithmic Charts And Scale - What Is Log Scale Chart

#LinearCharts #LogarithmicCharts #tradingstrategy #backtesting #tradingstrategies #trading

What is the best: logarithmic or linear charts and scale?

Linear vs logarithmic charts and scale is important to understand because the difference between linear and logarithmic charts might be huge – the bigger the scale the more it matters. The difference between a linear chart and a log scale grows significant as the time frame expands.

In this article, we explain what a log scale chart is. We look at linear vs. logarithmic charts and scales, what is the difference, and why it’s best and important (and correct) to use a logarithmic scale and not a linear one. A linear chart shows the points change, while a logarithmic chart shows the percentage change. Thus, they differ more the bigger the movement is.

If you want to go into more detail about "Should You Buy Or Sell Stocks In A Volatile Market?", please have a look at our article on our webpage:

https://www.quantifiedstrategies.com/linear-vs-logarithmic-charts/

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