Log Scale Charts

Logarithmic price scale (better known as Log Scale), is useful for viewing the longer-term/bigger picture of an asset.

Day traders will prefer linear charts.

Over the longer term, price changes on a linear chart can be distorted.

Log charts focus on percentage changes and can provide an overview of exponential growth for an asset.

Both Log and Linear have their benefits.

For example, if a stock starts at $10 and hits $100 two years later, the linear chart will make the move up look parabolic because it started at $1, and Linear Charts focus on the difference in price on the axis.

Log Charts focusing on the difference in percentage on the axis will display the same chart in a different manner.

Elliot Wave Counts can be done on Log Scale for a long term count.

That being said, it is best to use both charts for any analysis, as you may find different confluence that presents a setup not found on the other.

Time Stamps

3:30 – EOS Previous COTW (DO NOT TRADE THIS)

12:05 – LOG SCALE

• It is used if an asset is extremely volatile in very high %
• It is used if you want to check old (years) data
• It is used to get a HTF perspective
• A nice example was Daniel’s HTF BTC channel on Coinbase for the 42000$ target (plus it has been volatile and years old chart)
• IMPORTANT: when using log scale on TradingView it is important to remember to click ‘Fib levels based on log scale’ or the Fibonacci values will be incorrect

19:48 – EXAMPLE ON BTC

29:29 – Q&A

• Daniel never uses log scale for day trading or scalp trading
• Log scale can be used for a HTF Elliott Wave count if it is historic and volatile
• When looking for the HTF targets you can look on log and normal scale. It is good to be aware of both and maybe there is also some confluence

44:48 – SUMMARY

47:41 – BTC TA

• Daniel checks for the potential wave 4 retracement levels on the log and normal scale
• He also explains the trade he is currently in and his further plan

NOTE: 

If you have a question related to trading, ask in trading help (in Contenders section)