Line chart

Line chart glossary

What is a line chart in trading?

A line chart is a type of price chart that shows data points or prices between time periods and then connects them together with a line.

The closing price or average price for each day, for example, can be plotted and connected with a line. On a one-hour time frame, it would have been the closing price or average price of each hour.

Often, the time frames are so small that they are not visible, making the resolution of a picture the restriction for the precision of the chart.

It is the most basic chart available. It focuses on single data points, it leaves out the noise between the open and close for each period. Some traders prefer trading with line charts over other types of chart because of their simplicity.

Below is an example of a line chart:

Line chart

Most traders though prefer candlestick charts for analysis of price movements and trading.

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