Hello Traders
Ever clicked the “Log” button on your chart and suddenly everything looked different?
Yeah, you’re not alone…
Most traders ignore it.
But understanding the difference between a Linear and Logarithmic chart can literally change how you see price action — especially if you’re into long-term moves or trading volatile markets like crypto.
Let’s break it down real simple
Linear Chart (a.k.a. the default)
This is what most charts use by default.
It measures price change in absolute terms.
Meaning: the distance from $10 to $20 is exactly the same as from $20 to $30 — because in both cases, price moved $10.
🧠 Sounds fair, right?
Not always. Here’s why…
Let’s say a stock goes from $1 to $2 — that’s a 100% gain.
But if it goes from $100 to $101 — that’s just 1%.
Linear Chart – Pros
Simple and easy to read
Good for short-term price action
Better for assets with small price ranges
Familiar to most beginners
Linear Chart – Cons
Misleading in long-term charts
Distorts large percentage moves
Trendlines become unreliable over time
Doesn’t reflect real growth in % terms
Logarithmic Chart (Log Scale)
This one shows percentage-based price movement.
Now, going from $10 to $20 (100% gain)
and going from $100 to $200 (also 100% gain)
look exactly the same on the chart — which actually makes more sense when analyzing growth.
It’s super useful when:
You’re analyzing big moves over time
You want to draw accurate trendlines in long-term charts
You’re dealing with assets that grew 5x, 10x or more
You care about % gains instead of raw price
Log Chart – Cons
Less intuitive for beginners
Not useful for low-volatility assets
Small price moves may look insignificant
here is an example of the same chart but in the Log Scale :
As you can see on the chart above there is huge difference in accuracy when you use Log scale
for the high volatile asset such as BTC specially in the long term movements .
🆚 So, When Should You Use Each One?
Situation Use Linear Use Log
Small price changes
Day trading / scalping
Long-term analysis
Parabolic or exponential moves
Drawing long trendlines
Final Thoughts
If your chart looks weird when you zoom out…
If your trendlines don’t quite fit anymore…
Or if you’re analyzing something that went 10x…
Try switching to Log scale — it might just clean up the noise.
Small toggle. Big difference.
And also remember our golden rule :
Discipline is rarely enjoyable , but almost always profitable.
KIU_COIN