Log scale vs linear scale graphs

Discussion in 'Stocks' started by nwoptions, Mar 11, 2021.

  1. Which type of price graph do you prefer to use for stock trading?

    When I look at the daily chart for D. R. Horton Inc (ticker DHI) on Investors.com (IBD) and compare it to the TradingView chart, the charts look dramatically different.

    Is there an advantage to using one over the other?
     
  2. Probably no specific advantage.

    Chart players will use one or both to justify their plays. Each is as valid as the other.
     
    nwoptions and murray t turtle like this.
  3. ZBZB

    ZBZB

    Look at log charts for big moves on bitcoin or gold charts back to 1971. Look at log regression for the lows and highs of bitcoin. See Benjamin Cohen on YouTube.
     
    nwoptions likes this.
  4. R1234

    R1234

    Log scale only matters when you're looking at long time frames. For long term stock charts I look at Log scale + dividend adjusted. That way you can compare stocks by seeing which one has the best looking 'equity curve'.
     
  5. %%
    Exactly;
    same data anyway.
    I've used both , but on a really good multiyear trend i avoid any chart where the right edge prices get jammed /slammed into each other......................................................
     
    nwoptions likes this.