Log scale charts are particularly useful when the price has moved significantly and when analyzing long-term charts. Logarithmic scale is based on multiplication while linear scale is based on addition.
In a linear scale, the vertical spacing between two grid lines is the same (distance between 10 and 20 is the same as distance between 100 and 110) while on a logarithmic scale the vertical spacing between two grid lines corresponds to the percentage change (distance between 10 and 20 is the same as distance between 100 and 200).
Steps:
- Select "View" then "New Chart" to plot a new chart
- There are two ways to change the chart scale:
- 1: Click on "Lines" button at the bottom of the chart to open a menu then click on "Set Log Scale"
- 2: Right click on a pane; select "Tools" then "Set Log Scale"
Note that the first option updates the scale of all panes in a chart, while the second option updates the scale of the selected pane only. This means that the second option allows you, for example, to set a log scale for the main pane where you display your OHLCV data (Open, High, Low, Close...) and a linear scale for other panes where you display your technical and fundamental analysis indicators.
Once you set the log scale in your chart, you can reverse to the linear scale (default) by performing the same steps described above and selecting "Set Linear Scale".
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.
