Chart types
Line charts
2 min
A line chart is the simplest view of price: a single line connecting the closing price of each period.
How to read it
There is nothing to decode — the line simply traces where price closed over time. Because it ignores the highs, lows and opens, it strips away intraday noise and shows the cleanest possible picture of direction.
When it shines
- Spotting the big-picture trend without distraction.
- Comparing several markets on one screen, where candles would be cluttered.
- Drawing long-term support and resistance using closes, which many traders consider the most meaningful price of the day.
The limitation
A line chart hides the range. It cannot show you that a quiet-looking close actually came after a violent swing, nor reveal gaps between one period's close and the next period's open. For any decision that depends on volatility or intraday behaviour, you need a richer chart — which is exactly what the bar and candlestick give you.
This content is for educational and informational purposes only and is not investment, financial, tax or legal advice. Trading and investing carry risk, including the possible loss of capital. Any performance shown by third-party tools is hypothetical and not a promise of future results. Do your own research and consider professional advice before making any decision.