Timeframes, Sessions and Chart Scales
A timeframe determines how observations are grouped; a chart scale determines how price differences are displayed. Neither changes the underlying trades, but both can change the visual impression of a trend or pattern.
How it works
A one-hour candle combines transactions within an hour; a daily bar aggregates a longer session. A linear axis gives equal space to equal currency changes. A logarithmic axis gives equal space to equal proportional changes and requires positive prices. Choose session boundaries and adjusted or unadjusted equity data explicitly.
Worked example
On a linear chart, 10→20 and 100→110 both move 10 units vertically. Their returns are very different: 100% and 10%. On a log chart, 10→20 and 100→200 occupy the same vertical distance because both double. A daily high of 110 and low of 100 still say nothing about the sequence of hourly movements between them.
Amounts, prices and scenarios are fictional teaching examples. They exclude any effects not explicitly stated and are not trade recommendations.
Limits and common mistakes
Changing scale until a trendline looks persuasive is a form of selection bias. Extended-hours bars, stock splits and timezone settings can alter pivots. Compare like-for-like sessions and use adjusted prices when the question requires total historical continuity.
Knowledge check
Does a logarithmic chart make a price increase less real?
Read the explanation
No. It displays proportional change rather than equal currency increments. The analytical question determines which representation is appropriate.
References and further reading
These sources explain the underlying concepts and specifications. They do not endorse QBMFX Academy. Check the relevant market, protocol version and reporting rules before applying an example.