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- How do you describe a logarithmic scale?
- Why do people use logarithmic scales?
- Is it better to chart logarithmic or regular?
- Why do we use logarithmic scale instead of linear?
How do you describe a logarithmic scale?
A logarithmic scale is a nonlinear scale often used when analyzing a large range of quantities. Instead of increasing in equal increments, each interval is increased by a factor of the base of the logarithm. Typically, a base ten and base e scale are used.
Why do people use logarithmic scales?
Logarithmic scales are useful when the data you are displaying is much less or much more than the rest of the data or when the percentage differences between values are important. You can specify whether to use a logarithmic scale, if the values in the chart cover a very large range.
Is it better to chart logarithmic or regular?
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.
Why do we use logarithmic scale instead of linear?
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.
