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For example, a linear scale disregards the fact that a $5 move is more substantial when the price of an asset is $10 than when the price of the asset is $50.
Logarithmic Price Scale vs. Linear Price Scale: An Overview . The interpretation of a stock chart can vary among different traders depending on the type of price scale used when viewing the data.
1. Linear (or graphic) scale: Usually used on maps or technical diagrams, the linear scale involves measuring distances relative to a specified length. 2. Numeric (or representative fraction) scale: ...
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