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TradingSolutions Function Library
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Return to Complete List of Functions |
The Logarithm (Natural) function calculates the natural logarithm of a given value. In other words, the power that the constant e is raised to in order to get that value.
Parameters ------------------ Value The value to use in the calculation. This is typically a field in a data series or a calculated value.
Function Value ------------------------ This function calculates the natural logarithm of a given value. In other words, the power that the constant e is raised to in order to get that value. e is a transcendental number that is the base of natural logarithms and is equal to approximately 2.71828183.
Logarithms are useful with financial data because they can be used to keep data on the same relative scale. When a price changes by 10%, the log of the values will have the same difference. For example, the difference between Log(10) and Log(11) is the same as the difference between Log(100) and Log(110).
The value of this function can be converted back to the original value using the Exponent function.
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