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.

Stock charts come in two main forms%3A Linear and logarithmic Linear charts treat all dollar price changes equally Professional investors look at both types of charts to understand stock moves USA ...

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.

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 ...

In “ When Should I Use Logarithmic Scales in My Charts and Graphs ”, I showed the revenues of the top 60 Forbes 500 companies using both linear and logarithmic scales.