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Using a Logarithmic Chart

A logarithmic trading chart, also known as a log chart, shows price movements in terms of percentage changes rather than absolute changes. This can provide a different perspective on market trends compared to a normal trading chart, which shows changes in absolute price.

The advantage of a logarithmic chart is that it can better represent price movements that occur over a wide range of values. For example, if a stock's price moves from $10 to $20, that's a 100% increase. But if it moves from $100 to $200, that's also a 100% increase, even though the absolute dollar value change is much greater.

A logarithmic chart can help to better visualise these percentage changes.

In general, logarithmic charts are more commonly used for long-term analysis of price trends, such as in stock market indexes or commodity prices. For short-term trading or day-to-day analysis, a normal trading chart may be more appropriate. Ultimately, the choice between a logarithmic chart and a normal chart depends on the specific context and the user's preferences.

You can select this in TradingView at the bottom right hand corner of the chart where it says:

% log auto


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