Business, Legal & Accounting Glossary
Logarithmic Price Scale, also known as log scale, is a chart that has a logarithmic scale.
Charts (stock market or indicators) employing a Logarithmic Price Scale have data samples plotted in such a way that two equivalent per cent changes are represented by the same vertical distance on the scale, regardless of what the price of the asset is when the change occurs.
A type of scale used on a chart that is plotted in such a way that two equivalent per cent 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. This is the case because a $1 increase in price becomes less influential as the price heads higher since it now corresponds to less of a percentage change than it did when the price of the asset was at a lower level. Also referred to as a “log scale”.
Log Scale
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This glossary post was last updated: 25th March, 2020 | 0 Views.