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HomeRight Arrow TerminologyRight Arrow Line Chart

Line Chart

Description

A line chart is a type of graphical representation used in trading and financial analysis to display the historical price data of a financial asset, such as a stock or currency, over a specific period of time. It is one of the simplest and most straightforward chart types.

In a line chart, the asset’s closing prices are typically plotted on the vertical axis (Y-axis), while the time or date intervals are plotted on the horizontal axis (X-axis). The closing prices are connected by a continuous line, forming a visual representation of how the price has changed over time.

Line charts are particularly useful for providing a clear and concise view of the overall price trend. Though less detailed than other chart types such as candlestick or bar charts, line charts offer a quick and straightforward way to identify general trends, support and resistance levels, and potential market turning points. They are commonly used for longer-term analysis and for illustrating broader price directions.

Start Trading with Vantage

Access markets including forex, commodities, indices, shares and more, at low cost.

Start Trading with Vantage

Access markets including forex, commodities, indices, shares/stocks and more, at low cost.

Start trading CFD stocks by opening a live account here, or practice trading with virtual currency with a demo account.

You can also sign up for our free, weekly webinars that will break down the current markets as well as discuss potential trade set ups for the week.

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