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| Log charts examine percentage growth. The visual length of price increments decreases as prices move higher. Linear charts examine price growth. The visual length of price increments remains constant as prices move higher. A trendline can form on either the log or linear chart, but not both at the same time. General rule for swing traders: stick with log charts if you follow low-priced stocks OR stocks that experience significant price change over short periods. Stick with linear charts for higher-priced or slower-moving stocks. Regardless, always search for trendlines and channels by toggling back and forth between both images. |
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