Logarithmic Price Scale A logarithmic price scale

Logarithmic Price Scale

A logarithmic price scale shows changes proportionally so that a given vertical distance shows the same percentage change in price, rather than the same absolute change in price (as with a linear scale). For example, the vertical distance between price levels 1 and 10 on a log chart is the same as the distance between price levels 10 and 100 because they both represent a 10-times change in price. A logarithmic chart may provide some advantage especially when analyzing longer term charts. For this reason, Trending123.com uses a logarithmic price scale, rather than a linear scale, to identify technical events on weekly price charts.