Uploaded April 2020 | Updated September 2026, 14 minutes ago
One of the main mistakes those who interpret any type of chart make is paying so much attention to what they are charting that they fail to pay any attention at all to how they're doing it.
As such, we end up with investors who believe the linear scale approach is adequate enough when charting exponential growth, for example, and that paying attention to the logarithmic chart isn't warranted.
As explained through this video, that is hardly the case.
Linear and logarithmic (or log, colloquially) charts complement one another rather nicely and as such, both are worth including in the arsenal of any self-respecting trader and/or investor.
Don't make the mistake of not caring about scales and assuming that whatever default your charting application provides is more than fine... just don't. Instead, give me a minute of your time and I'll explain everything you need to know about linear or arithmetic as well as logarithmic charting. As complicated as it may seem, especially the latter term, understanding the concepts is remarkably straightforward.
One of the main mistakes those who interpret any type of chart make is paying so much attention to what they are charting that they fail to pay any attention at all to how they're doing it.
As such, we end up with investors who believe the linear scale approach is adequate enough when charting exponential growth, for example, and that paying attention to the logarithmic chart isn't warranted.
As explained through this video, that is hardly the case.
Linear and logarithmic (or log, colloquially) charts complement one another rather nicely and as such, both are worth including in the arsenal of any self-respecting trader and/or investor.
Don't make the mistake of not caring about scales and assuming that whatever default your charting application provides is more than fine... just don't. Instead, give me a minute of your time and I'll explain everything you need to know about linear or arithmetic as well as logarithmic charting. As complicated as it may seem, especially the latter term, understanding the concepts is remarkably straightforward.
