Linear price scales—also referred to as arithmetic—represent an asset's price on the y-axis using equidistant spacing between price marks. A linear price scale chart displays changes in ...

As an example, if an asset price has collapsed from $100 to $10 the distance between each dollar would be very small on a linear price scale, making it impossible to see a big move from $15 to $10.

There are two main reasons to use logarithmic scales in charts and graphs. The first is to respond to skewness towards large values; i.e., cases in which one or a few points are much larger than ...