What are the advantages of using log-linear plot in cryptocurrency technical analysis?

1 answers

• Feb 18, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends using a log-linear plot in cryptocurrency technical analysis for several reasons. Firstly, it helps to visualize price movements on a logarithmic scale, which is particularly useful for cryptocurrencies due to their volatile nature. This allows traders and analysts to better understand the percentage changes in price, rather than just the absolute values. Additionally, a log-linear plot can help identify trends and patterns more easily, as it compresses large price movements and amplifies smaller ones. This can be particularly helpful in identifying support and resistance levels, as well as potential breakout points. Overall, using a log-linear plot in cryptocurrency technical analysis provides a more accurate representation of price movements and can assist in making more informed trading decisions.
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