InvestorQ : What are Line charts in technical analysis and how are they used to judge the direction of price movements?
Aditi Sharma made post

What are Line charts in technical analysis and how are they used to judge the direction of price movements?

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Ria Jain answered.
2 years ago
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Line charts are the simplest form of technical charts. They measure the period in the X-axis and the price and the volumes in the Y-axis. The volume chart is normally shown as a subset of the price chart so that the price movement at any point of time can be directly correlated with the volume chart. This is important as it underlines how reliable the trend shown by the price chat is. A rising price chart supported by rising volumes is considered more credible evidence of a bullish market. Similarly, a sharp fall in price accompanied by a sharp increase in volumes indicates a more credible down trend. However, line charts can be used to decipher very simple trends like price trends, price supports, price resistances etc. For more complex forms of charting we need to move beyond the pure line charts.

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