What is a Line Chart? Technical Analysis

Forex Educational Video Series

What is a Line Chart?

A lot of traders prefer the line chart to Japanese Candlesticks or Bar charts. For example, many traders who trade the stock market prefer to use the line chart to see price movements. This is because they consider the closing price to be the most important price of all. The line chart basically consists of the closing price for each period.

Of all three charting methods, the line chart is the simplest and most easily understood by beginners. No specialised knowledge is required and they give the big picture of the market. On the other hand, they lack a lot of information that Bar Charts, and especially Candlestick charts, show. This includes the open, the high, and the low price. For this reason, they can be misleading and traders should take caution if they decide to use this type of charting method. Stay tuned for more Technical Analysis basic videos!

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