Scale Settings (Log vs Linear)
The price scale determines how price levels are spaced on your chart. This seemingly simple setting has a major impact on how you perceive trends and draw analysis. Understanding the difference between logarithmic and linear scales is essential for accurate chart reading.
Linear (Arithmetic) Scale
On a linear scale, equal price distances are displayed with equal spacing. A move from $10 to $20 takes the same vertical space as a move from $100 to $110. This is the default setting and works well for short-term analysis and instruments with small percentage ranges.
Logarithmic Scale
On a logarithmic scale, equal percentage moves are displayed with equal spacing. A move from $10 to $20 (100%) takes the same space as a move from $100 to $200 (100%). This is critical for long-term charts and assets that have experienced large price changes.
When to Use Each Scale
- Linear: Day trading, intraday charts, assets with small price ranges, short-term analysis
- Logarithmic: Weekly/monthly charts, stocks that have grown significantly, Bitcoin/crypto, long-term trend analysis
Percentage Scale
TradingView also offers a percentage scale, which displays all price data as percentage changes from a reference point. This is especially useful when comparing the performance of multiple assets on the same chart.
Pro Tip
Always use logarithmic scale when analyzing Bitcoin, Tesla, or any asset that has moved 1000%+ from its lows. On a linear scale, early price action looks flat and meaningless, while on log scale, you can see the true percentage trends.
Key Takeaways
- Linear scale: equal price distances = equal spacing (default)
- Logarithmic scale: equal percentage moves = equal spacing
- Use log scale for long-term charts and assets with huge price changes
- Use linear scale for short-term and intraday analysis
- Percentage scale is ideal for comparing multiple assets