Linear Pricing

Definition

A linear (arithmetic) price scale is a chart where equal vertical spacing on the y-axis represents equal absolute price changes. Traders use it to visualize price movements, with each unit change shown as the same vertical distance, regardless of the asset’s price.

How Linear Price Scales Work

Linear price scales, also called arithmetic charts, display price changes as constant units rather than percentages. They are simpler to create manually compared to logarithmic charts, which show percentage changes and often require advanced software. Both scales use the same x-axis dates, but traders may interpret them differently depending on the scale used.