A small thread on the importance of using log charts:

Rs 100 of 1990 is not comparable with Rs 100 of 2021 in absolute terms

Similarly, price of a stock some years back may not be comparable with today's price in absolute terms.
For EG, SBI quoting at Rs 10 in 2002 is not comparable with SBI quoting at Rs 400 now

For a 100% jump in 2002, stock would have to reach 20 (which is just Rs 10 in absolute terms)

While today, Rs 10 in absolute terms is a meagre 2-3% move
We shall always calculate moves in % terms

For this reason it's preferred to use log charts, especially long term charts

Log charts calculate moves in % terms
Also, if a stock goes from 20 to 200 in one year, even then it's preferred to use log charts.

More from Prashant Bhansali

#RIL tgts are 2180 and 1820 positional over next few months if the high made at 2856 doesn't cross.

Not looking good.

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I'm going to do two history threads on Ethiopia, one on its ancient history, one on its modern story (1800 to today). 🇪🇹

I'll begin with the ancient history ... and it goes way back. Because modern humans - and before that, the ancestors of humans - almost certainly originated in Ethiopia. 🇪🇹 (sub-thread):


The first likely historical reference to Ethiopia is ancient Egyptian records of trade expeditions to the "Land of Punt" in search of gold, ebony, ivory, incense, and wild animals, starting in c 2500 BC 🇪🇹


Ethiopians themselves believe that the Queen of Sheba, who visited Israel's King Solomon in the Bible (c 950 BC), came from Ethiopia (not Yemen, as others believe). Here she is meeting Solomon in a stain-glassed window in Addis Ababa's Holy Trinity Church. 🇪🇹


References to the Queen of Sheba are everywhere in Ethiopia. The national airline's frequent flier miles are even called "ShebaMiles". 🇪🇹