Arithmetic or Logarithmic Scaling?There are two axes on any market chart. The x axis, along the bottom, registers the date (except in point-and-figure charting), and the у axis, the price. There are two methods of plotting the у axis, arithmetic and logarithmic. And which one is chosen can have very important implications.Arithmetic charts allocate a specific point or dollar amount to a given vertical distance. Thus, in Chart 2-1, each arrow has the same vertical distance and reflects approximately 200 points. That will be true at any price level.
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