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Chart scaling is a small topic in chart analysis. You can either select arithmetic or log scaling in your chart based on time frame of analysis. Watch video for more details. 

Chart scaling arithmentic and log chart in technical analysis



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When analysisng a long term chart, its difficult to see price advances in early stages. a move from 10 to 20 and 500 to 1000 is same length movement in percentage term ie 50 percent. But in normal arithmetic chart a first move is only of 10 points and second move is 500 points. So first move wont be clearly visible in arithmetic chart. But in logarithmic chart its adjusted which makes easier to analyse price in initial stages also.

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