Definition
The chart is a visualization of a chosen dataset, not a universal price for the asset. Common formats include lines, bars, and candlesticks. A line may join closing prices, whereas bars and candles can preserve each interval’s open, high, low, and close.
How It Works
A linear vertical scale gives equal space to equal absolute changes. A logarithmic scale gives equal space to equal proportional changes, making long histories with large price differences easier to compare. Changing the interval or scale can substantially alter the visual impression without changing the underlying observations.
Key Considerations
Check the venue, pair, units, timezone, and price source. Missing data or thin trading can distort the picture. Past patterns do not guarantee future returns, and a smooth chart does not prove an asset is liquid or low-risk.