You can open a log chart in TradingView by following these steps:
- Open a chart: Go to the TradingView website or app, and select the asset you want to analyze.
- Access the chart settings: Click the "Settings" icon (gear icon) in the top right corner of the chart.
- Select "Scale Type": Look for the "Scale Type" option within the settings.
- Choose "Log": Select the "Log" option from the dropdown menu.
- Apply changes: Close the settings menu, and the chart will automatically switch to a log scale.
Understanding Log Charts
Logarithmic charts, often referred to as log charts, display price data on a logarithmic scale. This means that the price axis is scaled proportionally to the percentage change, rather than the absolute change.
Benefits of Using Log Charts
- Visualize Trends: Log charts can help you better visualize long-term trends and identify potential support and resistance levels.
- Analyze Volatility: They can make it easier to compare price volatility across different timeframes.
- Highlight Exponential Growth: Log charts emphasize exponential growth patterns, which can be helpful for identifying rapidly growing assets.
Example:
Let's say a stock price rises from $10 to $20, then from $20 to $40. On a linear chart, both price increases would appear equal. However, on a log chart, the second increase from $20 to $40 would appear larger, reflecting the fact that it represents a 100% increase, while the first increase from $10 to $20 was only a 100% increase.
Conclusion:
By switching to a log chart in TradingView, you can gain a different perspective on price movements and identify patterns that might be less apparent on a linear chart.
