What you will learn
- Linear and logarithmic scales
- OHLC and candle displays
- Volume pane interpretation
- Adjusted versus unadjusted series
Linear and logarithmic scales
A linear scale gives equal vertical space to equal absolute changes. A logarithmic scale gives equal space to equal proportional changes. Choose the scale for the question and label it; switching scales can change the visual impression of long-term moves.
OHLC and candle displays
OHLC bars and candlesticks encode interval prices. Their styling changes readability, not the observations. Inspect numerical values when a visual pattern is ambiguous, and avoid treating a color convention as a universal standard across platforms.
Volume pane interpretation
A volume pane must identify what is counted: traded contracts, units, or quote/tick activity. A broker tick count is not automatically total gold-market volume. Interpret the measure within its feed and venue rather than extrapolating it to all trading.
Adjusted versus unadjusted series
Adjusted series modify historical values according to a stated method. Futures back-adjustment and fund distribution adjustments solve different display problems. Use raw tradable contract data when the research question depends on actual historical execution prices.
Worked example
On a linear scale, a move from 100 to 200 occupies the same distance as 200 to 300. On a log scale, equal doubling moves such as 100 to 200 and 200 to 400 occupy equal distances.
Try it yourself
Choose an appropriate scale for comparing percentage growth over a long period, then explain why the axis label must remain visible.
Show the worked solution
A log scale can help compare proportional growth, but the reader needs to know that distances represent ratios rather than equal cash changes. Neither scale proves a trading signal.
Apply this to your course project
Submit a chart template with instrument, timezone, price type and data-source notes.
Keep the calculation inputs, assumptions and decisions with your work. Practical exercises are self-reviewed; the scored knowledge checks assess the questions shown, not an independent certification of practical competence.