A type of scale used on a chart that is plotted in such a way that two equivalent percent changes are represented by the same vertical distance on the scale, regardless of what the price of the asset is when the change occurs.

The distance between the numbers on the scale decreases as the price of the underlying asset increases. Also referred to as a "log scale".

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Logarithmic price scales are generally accepted as the default setting for most charting services, and they're used by the majority of technical traders.

Common percent changes are represented by an equal spacing between the numbers in the scale.

Contrast this to "linear price scale". Dictionary Term Of The Day.

Why Use a Logarithmic Scale to View Stocks? | Finance - Zacks

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Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. Logarithmic Price Scale Share. Linear Price Scale Scale In Scale Out Minimum Efficient Scale Economies Of Scale Scale Order Diseconomies Of Scale Sliding Scale Fees Low-Cost Producer.

Trendlines on Logarithmic Scale Charts - All Star Charts -

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