# Technical analysis training; Chart Scale and Trading Volume – Part 3

## Technical analysis training; Chart Scale and Trading Volume – Part 3

Technical analysis training; Chart Scale and Trading Volume – Part 3: Price charts include the horizontal time axis and the vertical price axis. The price history shown in these charts is raw and unchanged. The scale used in line charts is linear by default.

To better understand the linearity of the graph, the distance between \$ 100 and \$ 1,000 (\$ 900) is shown in the line graph 10 times the distance between \$ 10 and \$ 100 (\$ 90), but this is the case with logarithmic graphs. Graphs are semi-logarithmic because only one of its axes is represented logarithmically but is called logarithmically because of a common error. To better understand this, look at the chart below:

This chart shows the changes between the lowest price (\$ 570) and the highest price (\$ 19,891) on a linear scale, and due to the large price difference between the two prices, shows the changes in prices below \$ 1,000 with a line chart. It is very difficult.

### Technical analysis training; Chart Scale and Trading Volume – Part III

But by using logarithmic diagrams and changing the scale of the vertical axis from linear to logarithmic, these changes can be seen more clearly than before. Logarithmic graphs use the percentage change between prices instead of price changes; This means that the gap between the \$ 100 and \$ 200 prices is the same as the \$ 5 to \$ 10 price gap, as the price has doubled in both cases. In a standard logarithmic diagram, the numbers 0.1, 1, 10, 100, 1000, 10,000 and… are displayed. It is clear that by giving equal distances between the numbers 1 and 10 and the numbers 1000 and 10,000, smaller changes will also be visible.