DEFINITION of 'Logarithmic Price Scale'
A type of scale used on a chart that is plotted in such a way that two equivalent percent changes are represented by the same vertical distance on the scale, regardless of what the price of the asset is when the change occurs. The distance between the numbers on the scale decreases as the price of the underlying asset increases. This is the case because a $1 increase in price becomes less influential as the price heads higher since it now corresponds to less of a percentage change than it did when the price of the asset was at a lower level. Also referred to as a "log scale".
INVESTOPEDIA EXPLAINS'Logarithmic Price Scale'
Logarithmic price scales are generally accepted as the default setting for most charting services, and they're used by the majority of technical traders. Common percent changes are represented by an equal spacing between the numbers in the scale. For example, the distance between $10 and $20 is equal to the distance between $20 and $40 because both scenarios represent a 100% increase in price. Contrast this to "linear price scale".

Chartist
An individual who uses charts or graphs of a security's historical ... 
Rally
A period of sustained increases in the prices of stocks, bonds ... 
Overbought
1. A situation in which the demand for a certain asset unjustifiably ... 
Oversold
1. A condition in which the price of an underlying asset has ... 
Technical Analysis
A method of evaluating securities by analyzing statistics generated ... 
Candlestick
A chart that displays the high, low, opening and closing prices ...

Active Trading Fundamentals
Charting Your Way To Better Returns
Learn about the powerful hybrid techniques that take advantage of both technical and fundamental analysis. 
Forex Education
An Introduction To JCharting
Learn about a technical tool that's based on the view that markets are energetic systems. 
Chart Advisor
Healthcare Stocks Continue to Be a Good Bet
Here are four stocks in the healthcare sector that have already put up big numbers, and could still go higher, if they breakout to the upside. 
Fundamental Analysis
Explaining Price Targets
A price target is what an investment analyst projects a security’s future price to be. 
Fundamental Analysis
Present Value Interest Factor of Annuity (PVIFA)
PVIFA can be used to calculate the present value of a series of annuities by considering cash flows and depreciation. 
Chart Advisor
ChartAdvisor for July 30 2015
Weekly technical summary of the major U.S. indexes. 
Active Trading Fundamentals
Five Biggest Obstacles Facing FirstYear Traders
Address these five obstacles and you'll make significant progress as a firstyear trader. 
Options & Futures
How To Hedge Put Options Using Binary Options
Want to hedge your plain vanilla long put option position with binary call options? We show you how. 
Options & Futures
How To Hedge Stock Positions Using Binary Options
Here’s a stepbystep method to hedge your long (and short) positions in stocks, using binary options. 
Trading Strategies
Microsoft's Game of CatchUp With The Dow
Microsoft (MSFT) underperformed the Dow Jones Industrial Average during the 2002 to 2007 bull market, but it has played catchup in recent years.

What is the difference between a logarithmic price scale and a linear one?
The interpretation of a stock chart can vary among different traders depending on the type of price scale used when viewing ... Read Full Answer >> 
What assumptions are made when conducting a ttest?
The common assumptions made when doing a ttest include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >> 
How are double exponential moving averages applied in technical analysis?
Double exponential moving averages (DEMAS) are commonly used in technical analysis like any other moving average indicator ... Read Full Answer >> 
How do you know where on the oscillator you should make a purchase or sale?
Common oscillator readings to consider making a buy or sale are below 20 or above 80, respectively. More aggressive investors ... Read Full Answer >> 
What are the alert zones in a Fibonacci retracement?
The most commonly used Fibonacci retracement alert levels are at 38.2% and 61.8%. A 50% retracement level is also commonly ... Read Full Answer >> 
How was the Fibonacci retracement developed for use in finance?
The use of Fibonacci retracements in stock trading was popularized by noted technical analysts W.D. Gann and R.N. Elliott. ... Read Full Answer >>