Classify Chart Log For Free

A logarithmic chart uses a logarithmic scale, not a linear value. A linear scale is what most charts commonly use, where values are equally spaced out like a ruler. With logarithmic scales, while the end value could be the same as the linear value, the spaces between the values are different.

Linear charts become useful when you want to see the pure price changes with scaling calculations. Day traders often prefer linear charts. Logarithmic charts are useful when viewing long-term charts. Over the long-term, large price changes are made, which a linear chart can distort.

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 the bulk of the data. The second is to show percent change or multiplicative factors.

A logarithmic price scale, also referred to as a "log scale", is a type of scale used on a chart that is plotted such that two equivalent price changes are represented by the same vertical distance on the scale.

The logarithmic scale is useful for plotting data that includes very small numbers and very large numbers because the scale plots the data so you can see all the numbers easily, without the small numbers squeezed too closely.

Logarithmic price scales are better than linear price scales at showing less severe price increases or decreases. They can help you visualize how far the price must move to reach a buy or sell target.

Presentation of data on a logarithmic scale can be helpful when the data: covers a large range of values, since the use of the logarithms of the values rather than the actual values reduces a wide range to a more manageable size; may contain exponential laws or power laws, since these will show up as straight lines.