Which scale, log or linear, is more commonly used in analyzing cryptocurrency price movements?
Thiệu TrầnDec 25, 2021 · 3 years ago1 answers
When it comes to analyzing cryptocurrency price movements, which scale, log or linear, is more commonly used? What are the advantages and disadvantages of each scale in this context?
1 answers
- Dec 25, 2021 · 3 years agoIn the analysis of cryptocurrency price movements, both log and linear scales are commonly employed. The log scale is often favored when examining long-term trends and exponential growth patterns. It compresses the price data, making it easier to identify percentage changes and visualize overall trends. On the other hand, the linear scale presents the price data in a straightforward manner, displaying the actual price values without any compression. This scale is useful for short-term analysis or when precise price levels are of greater importance. Ultimately, the choice between log and linear scales depends on the specific analysis objectives and the preferences of the analyst.
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