Logarithmic charts are now available in SaxoTraderGO, on both Live and Demo.
Normal charts use a linear price scale where prices are plotted equally on the y-axis. Logarithmic charts, on the other hand, plot prices so that there is an equal % change between two prices levels.
For example: on a linear chart, a $5 price distance from $20 to $25 is the same distance as from $30 to $35. When plotted on a logarithmic chart, however, the distance will be shorter, as a change from 20 to 25 represents a 25% increase, whereas from 30 to 35 is an increase of only 16.67%.
Logarithmic charts can be useful when analysing price movements with large ranges, where the data is skewed towards the large values.
In this chart of the Dow Jones Industrial Index since 1984, the blue chart is plotted on a linear axis, and the white chart is plotted on a logarithmic price axis.
Notice that the 40% market drop in 1987 looks smaller on the linear chart, and much larger on the log chart. Similarly, the market crash during the financial crisis in October 2009 doesn’t look as impressive on the log chart compared to the 1987 crash. Also, some of the major market movements in the 1970’s are barely recognisable on the linear chart but stand out on the log chart.
To switch to a log chart
To switch to a logarithmic price scale, click the log chart icon in the chart toolbar.
FX chart Mid-price option
A new Mid-price option is now available on FX charts in TraderGO.
By default, the FX charts use the Bid Price but traders could also use the Ask price under the chart settings. Now, the Mid-price between the Bid and Ask is also available from the chart settings
To use the Mid-price for an FX chart:
1. Go to the chart configuration menu.p>
2. Select Mid from the Default price dropdown menu.