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- What is a linear scale graph?
- What is the difference between a linear and logarithmic graph?
- Why would you use a linear scale?
- Is it better to chart logarithmic or regular?
What is a linear scale graph?
A linear price scale is plotted on the y-axis—vertical—side of the chart. There is an equal distance between the listed prices. Also, each unit of a price change on the chart is represented by the same vertical distance—or movement up—the scale, regardless of the asset's price level when the change happened.
What is the difference between a linear and logarithmic graph?
A linear scale plots data points using a unique unit value to give an equal vertical distance between values. On the other hand, a logarithmic chart scaling plots using percentage change as the distance between data points.
Why would you use a linear scale?
One everyday use for linear scales is measuring the length of objects, whether it's as tiny as a screw or something more significant, like a piece of lumber or sheet metal. In addition, linear scales can measure objects' thickness, such as the thickness of a sheet of paper or the diameter of a pipe.
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.
