Charts

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by Masswaveindia

Type of charts , log and linear

All charts have two axis namely the price and time.

This is shown on the figure below

The vertical axis is the price scale  and horizontal one the time scale.

Now we have lot of internet sites giving stock charts.

investing .com.  is  a free site which is a viable alternative

 

Now a stock market chart has two axis –the price and time.

The chart can also be configured in different time zones. The smaller the time zone the more magnification there is .

Giving examples of these different time zones.

The chart can be configured also in log scale and linear scale. It is very important to understand the difference between the two.

In a linear chart , the size of any particular segment is shown exactly as per the price change.

However in a log chart, the size of a particular segment will vary as per the PERCENTAGE change from previous

Therefore In a linear chart , the physical distance between two equal price segments is exactly the same. However in a log chart the physical distance may or may not be same.
This is shown in the example chart shown below

The right extreme segment is showing larger on the linear scale. The same segment becomes smaller on the log scale as the

PERCENTAGE INCREASE FROM THE PAST IS RELATIVELY LESS

 

Excercises on

  1. different time frames
  2. toggling between log and linear charts.

 

 

 

 

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