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what is a line chart?

A line chart is a very popular chart setting among traders. It is a very simplistic way to read charts. Basically this is applies the standard graph to a stock chart.

Each day the final price of the stock is marked as 1 point. When you connect the points you come up with the line graph. Below is an example of how a line graph looks like.




Unlike candlesticks and bar charts this approach weeds out all the noise that happens during the day, (the highs, the lows, and the open). It leaves only the closed price which is the most important price.

You may find it easier to spot critical levels, such as support and resistance by looking at the chart this way. But it is ultimately your decision when deciding which graph type you would like to use.

Deltastock



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