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Chart types, price scales and adjusted history
Updated 4 August 2026 · 3 min read · 14 Contents
Plain-language meaning
Chart types are alternative views of a price series. Candlestick and OHLC charts retain four prices per interval; line and area charts usually retain one selected value; point-and-figure and Renko transform movement into boxes or bricks and do not preserve uniform time spacing.
Learning objectives #
You should be able to choose a chart type for a research question, explain linear versus logarithmic price scales, and recognise why adjusted and unadjusted histories can produce different returns, gaps and indicator values.
Core concept #
A candlestick is useful when the intrabar relationship matters. A close-only line reduces clutter for longer comparisons. A logarithmic scale gives equal vertical distance to equal percentage changes, while a linear scale gives equal distance to equal price changes. Transformation charts require explicit box and reversal rules.
Method and conventions #
Use one chart type consistently when comparing examples. Record the selected price input for line studies. For long histories or instruments with large proportional moves, inspect both linear and logarithmic views. Treat split-adjusted history as a distinct price basis rather than silently mixing it with raw bars.
Use it in XMarketRadar #
In Advanced Chart, confirm chart style, scale, interval and source before adding drawings. Point-and-figure, ZigZag and Renko settings must state percentage, absolute or ATR thresholds. XMarketRadar does not invent the intrabar order of a daily high and low when the source only supplies OHLC.
Worked example #
A move from 10 to 20 and a later move from 100 to 110 are both 10 price units on a linear chart, although the first is 100% and the second 10%. On a logarithmic chart the first occupies much more vertical distance because proportional change, not unit change, controls spacing.
How to interpret it #
A different chart style does not create new market evidence. Renko can make trends appear cleaner because it deliberately suppresses small moves and uniform time. A split-adjusted gap may disappear from history while the unadjusted series preserves the mechanical price change.
Limitations and common mistakes #
Do not infer duration from equal-width Renko bricks, compare drawings across incompatible scales, or calculate an indicator partly from adjusted and partly from raw history. Screenshots should show ticker, exchange, interval, scale and capture date so the visual remains auditable.
Market-specific differences #
Low-priced and high-inflation instruments can make linear charts visually misleading over long periods. Tick sizes, corporate-action practices and provider adjustment policies vary by venue, so cross-market screenshots require especially clear labels.
Key takeaway #
Key takeaway: charts are views, not facts separate from their data. Style, scale and adjustment basis must accompany every visual interpretation.
Practice exercise #
Practice: open a multi-year series on linear and logarithmic scales. Identify one visual conclusion that changes, then verify that the underlying start and end prices did not.
Educational use only #
This chapter is descriptive education. It is not investment advice, a price prediction, a recommendation, a claim of predictive accuracy, or an instruction to buy, sell, rebalance or place an order.