Yes price shown on a log scale...
never understood why price chartists use a logarithmic scale, it not representative in a linear fashion and tends to misreprezent and skew the data, only useful if you are measuring a scale that is mathematically none linear such as the decibel range with sound.
Btw, where is your Macd ?
A logarithmic scale plot makes a lot more sense. This is especially the case if you watch something on a long time scale and when the value is changeing not just a bit but a factor.
I know it looks not natural at first but it is really especially fitting to markets where everyone works with precent.
If you put sell or buy orders onto the market you usually will set your order a percent lower or higher than the current market price.
If the current value is 100 you will maybe put a sell on 101. And if it is 1000 a sell on 1010 and not 1001
Percent is nothing else than a factor. And a factor on a logarithmic scale is always an equal distance.
Let's make an example:
say a value of a good grew in 1 year from 100 to 200 and in the next year to 400
100, log(100) -> 2 (where log is base 10 but that works with the natural ln or any other base too)
200, log(200) -> 2.3
400, log(400) -> 2.6
we have 2 time a doubleing of the value. Where as on the linear plot you will see and exponential curve on the log scale plot you see a straight line. And you see that the factor 2 is always refelected as a distance of 0.3 independent of the current VALUE
This is valid for any factor (precent) not just the factor 2. Same factor same distance on the log scale
Why is that helpful?
Lets say you have a fix ammount to invest and you know the marked behaves rather exponentioal which is likely the case for markets where people think and trade precentage based. What you will observe are line patterns. (in TA you often have this channels)
Independent of the current good value you can by extrapolating the line easily figure out when your investment is expected to have grown to the factor that you desire given the trend holds.
I saw a very nice plot lately fromt he BlockSize debate.
If you look at this graphics :
https://blockchain.info/en/charts/n-transactionswith the setting AllTime and linear you will not see the trend that easy.
If however you switch to AllTime and logarithmic scale you see straight line going from Jul 2012 onward.
It's simple to extrapolate when the blocksize will be full with the logarithmic scale. It's a lot harder with linear scale.
