TechAnalyzer

Logarithmic Scale

← Back to Chart Types Line Charts Candlestick Charts Bar Charts Arithmetic Charts Logarithmic Scale
Mathematical Concepts Exponential Growth Percentage Scaling Log Base 10 Natural Logarithm

Logarithmic Scale Basics

$1000
$100
$10
$1

Equal spacing represents equal percentage changes. Each grid line represents a multiplication factor (10x in this example).

Exponential Growth

Exponential

Perfect for visualizing compound growth, where percentage changes compound over time creating exponential curves.

Best Use Cases

Long-term investing, growth stock analysis, cryptocurrency trading, and comparing percentage-based returns across different assets.

Logarithmic Scale Advantages

Percentage Clarity
  • • Equal percentage moves appear equal
  • • True trend line accuracy
  • • Compound growth visualization
  • • Volatility normalization
Trading Applications
  • • Long-term trend analysis
  • • Percentage-based stop losses
  • • Growth stock evaluation
  • • Multi-timeframe analysis

Mathematical Foundation

Logarithmic Properties
• log(a × b) = log(a) + log(b)
• log(a / b) = log(a) - log(b)
• log(a^n) = n × log(a)
• Equal ratios = Equal distances
Practical Examples
• $100 → $200 (100% gain)
• $200 → $400 (100% gain)
• Both moves appear equal size
• Reflects true percentage impact