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If you didn't draw it in a log scale, you wouldn't see the patterns when they occurred in the lower levels since the size of the later movements would dominate
by liquidify 6y ago
If you didn't draw it in a log scale, you wouldn't see the patterns when they occurred in the lower levels since the size of the later movements would dominate the graph.
Basically it is a way to show that there is similar movements in the value even when the ranges they move in are completely in different scales.
- Traster 6y agoBut doesn't this effectively just massively under-represent the actual deviation between the price and estimate and the error bounds. If you convert back in to real numbers this estimate is like saying APPL will be between $100 and $1000. I'd be interested to know if there are any other traded products that we view on a logarithmic scale.
- wmf 6y agoIf APPL is currently at $90, that prediction says you'll make somewhere between a lot and a ridiculous amount of money. It's not at all precise, but the action you should take if you believe the prediction is clear.