How to create a log scale chart
Updated on 2011-12-29 03:27:26
Log scale charts are particularly useful when the price has moved significantly and when analyzing long-term charts. Logarithmic scale is based on multiplication while linear scale is based on addition.
In a linear scale, the vertical spacing between two grid lines is the same (distance between 10 and 20 is the same as distance between 100 and 110) while on a logarithmic scale the vertical spacing between two grid lines corresponds to the percentage change (distance between 10 and 20 is the same as distance between 100 and 200).
- Select "View" then "New Chart" to plot a new chart
- There are two ways to change the chart scale:
- 1: Click on "Lines" button at the bottom of the chart to open a menu then click on "Set Log Scale"
- 2: Right click on a pane; select "Tools" then "Set Log Scale"
Note that the first option updates the scale of all panes in a chart, while the second option updates the scale of the selected pane only. This means that the second option allows you, for example, to set a log scale for the main pane where you display your OHLCV data (Open, High, Low, Close...) and a linear scale for other panes where you display your technical and fundamental analysis indicators.
Once you set the log scale in your chart, you can reverse to the linear scale (default) by performing the same steps described above and selecting "Set Linear Scale".