What's the deal with skewed charts, of which I see numerous examples in this industry? Here's a recent example: http://www.kitco.com/ind/Radomski/jan062012.html About halfway down, check out the left side of the chart, where the price range from 5 to 50 is totally irregular. The jump from 5 to 7.5 is similar to the same distance from 30 to 50. Help me understand!
It is a logarithmic scale rather than arithmetic scale. This is used so that charts can be compared by action and both fit on a single chart. For instance, it would be awkward to plot the price of silver and the price of gold on the same chart if the increments were the same, but it can be done with a logarithmic scale. Jim
Thanks, I totally forgot from schooling days the logarithmic scale is a bona fide tool. It does sure make apparent mountains out of molehills and vice versa, no?
