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What is a Line Chart? Technical Analysis

Forex Educational Video Series

Author: Andreas Thalassinos (BSc, MSc, MSTA, CFTe, MFTA), Head of Education at FXTM.

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!

Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: There is a high level of risk involved with trading leveraged products such as forex and CFDs. You should not risk more than you can afford to lose, it is possible that you may lose more than your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. When trading, you must always take into consideration your level of experience. If the risks involved seem unclear to you, please seek independent financial advice.

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