Negociar produtos financeiros com margem envolve um alto grau de risco e não é indicado para todos os investidores. Certifique-se de compreender totalmente os riscos e de tomar o devido cuidado para gerenciá-los.

Regulador:

×
CySEC

Skilling Ltd é regulamentada pela Comissão de Valores Mobiliários do Chipre (CySEC) sob a licença CIF nº 357/18

Continuar
FSA

Skilling (Seychelles) Ltd é autorizada e regulamentada pela Financial Services Authority (FSA) sob a licença nº SD042

Continuar
Trading Articles

What is a line chart?

Copy of Blog Images - Skilling (18).png

What is a Line Chart?

The Line Chart is the most basic type of chart which provides you with the least amount of data for observing a market. It connects one closing price to! the next one with a line which represents the general price movement of an asset over a specified period of time. Line Charts can be employed on any time frame.

Interpretation of Line Chart

All it essentially shows is the closing prices of the market depending on which timeframe you have selected. So, if you open a Line Chart on an H1 timeframe over a period of one day, you will see the closing prices of the 24 hours connected with each other. The same methodology is applied for other timeframes. The simplicity of Line Charts can be helpful to determine main trends and quickly gain an overall view of any market.

Line chart

Skilling Summary

The Line Chart is very basic and its simplicity is why it is used on countless charts obviously not just in trading. It is the easiest way to show the trend of virtually anything that has data points. Within trading, however, this simplicity is both a positive and a negative. It is a positive for the reasons outlined above. It is a negative because it doesn't show as full a picture as other types of chart. Therefore, it is up to you to decide how much you employ the use of Line Charts as a tool.

Not investment advice. Past performance does not guarantee or predict future performance.

Related Articles

What are bull and bear markets?

If you want to start investing in the financial markets you need to understand the meaning of the words ‘Bull’ and ‘Bear...

How to Identify Different Types of Candlestick Patterns?

Candlestick charts are many traders’ favourite way of looking at price movements of a share or commodity. Let’s take a c...

Different Types of Chart Patterns and How to Read Them

Once you are good at identifying trend lines, support, and resistance levels, you can start to learn about the various C...