Line charts

A line chart is a line on a chart that displays security prices over time. A line chart represents the price — usually the closing price — of a security from one period to the next.

(¡ftNG/ On a very short-term basis, a line chart is definitely a proper choice for decision making. However, since no other information is displayed, attempting to formulate any sort of trading strategy from a line chart of price action wouldn't be a worthwhile venture.

Figure 2-5 is a line chart of three months of daily closing prices for a stock.

Figure 2-5 is a line chart of three months of daily closing prices for a stock.

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