Line chart
Family VI · Charts & indicators
Not to be confused with bar chart, chart pattern, trend line.
Line chart is a chart type that plots a single value for each time period and joins those points with a line. It is commonly used to show closing prices, moving averages, or any single series where the focus is on direction and continuity rather than individual period detail. The line itself is the only visual element; there are no bars, candles, or volume columns.
Construction and use
A line chart is built by plotting one data point per time interval on a horizontal time axis and a vertical price or value axis. The points are then connected in chronological order. Because only one value per period is shown, the chart is compact and easy to read for long histories.
Typical inputs include closing prices, settlement values, or an indicator such as a simple moving average. Traders use line charts to assess trend direction, identify support and resistance levels, and compare multiple series on the same axes.
Worked example
The resulting line rises from A to B, then falls to C. The slope between points shows the direction of change; the absence of intraday data means the line does not show the day's high or low.
Limitations
A line chart discards the open, high, and low of each period. It also omits volume unless a separate panel is added. For these reasons, it is less suitable for analysing intraday volatility or candlestick formations. The choice of which value to plot (for example, close versus typical price) can change the chart's appearance and must be stated.
Often confused with
- bar chart
- A bar chart uses vertical or horizontal bars to represent a range or a value for each period, whereas a line chart connects single points with a continuous line; the visible sign is the presence of discrete bars rather than a joined line.
- chart pattern
- A chart pattern is a specific geometric shape formed by price action, such as a head and shoulders or triangle, while a line chart is the plotting format itself; the visible sign is that a pattern is identified by its shape, not by the chart type used to display it.
- trend line
- A trend line is a straight line drawn by an analyst to connect two or more price points and project a direction, whereas a line chart is the underlying series of connected data points; the visible sign is that a trend line is a single straight annotation, not the full plotted series.
See also
- forex technical analysis indicators
- price action
- fundamental analysis
- support and resistance
- technical analysis
- fibonacci