Line Chart

Technical analysis charts

How to read stock charts - Line Graphs and Charts

A line chart or line graph, is the simplest
form of stock charts and show the changes in price for each time segment for the setting you are viewing.

The standard setting for Linecharts is to show a line between the closing prices of each time frame but there is often the option to change that to use opening prices, the high or the low.

Click in the box at the bottom right of our interactive AVAFX chart below, and select Line to see an example of a line chart.

This chart is set on Hourly  so for a line-chart that means that every 1 hour a price will register on the chart and the line will essentially join the dots. The value of the line will then fluctuate as the price moves until the end of the next hour at which point the next point is sealed, and so on.

Line graphs or charts are very basic but as you can see, it does give you a very good idea of the stocks price history.

So these charts are suitable for long term stock trading or to back up another form of stock picking, but if you are trading short term you will need a chart with a bit more information on it such as bar charts, or our preference which is Japanese candlestick charts.



Technical Analysis Charts - LineCharts Explained



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