Hockey Stick Chart

AAA

DEFINITION of 'Hockey Stick Chart'

A line chart in which a sharp increase or decrease occurs over a period of time. The line connecting the data points resembles a hockey stick, with the "blade" formed from data points shifting diagonally and the "shaft" formed from the horizontal data points. Hockey stick charts have been used as a visual to show dramatic shifts, such as global temperatures and poverty.

INVESTOPEDIA EXPLAINS 'Hockey Stick Chart'

A sudden and dramatic shift in the direction of data points from a flat period to what is visible in a hockey stick chart is a clear indicator that more attention should be paid in order to determine the cause. If the data shift occurs over a short time period, it is important to determine if the shift is an aberration or if it represents a fundamental change.

RELATED TERMS
  1. Mat Hold Pattern

    A pattern found in the technical analysis of stocks that ultimately ...
  2. Bar Chart

    A style of chart used by some technical analysts, on which, as ...
  3. Cup and Handle

    A pattern on bar charts resembling a cup with a handle. The cup ...
  4. Head And Shoulders Pattern

    A technical analysis term used to describe a chart formation ...
  5. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  6. Line Chart

    A style of chart that is created by connecting a series of data ...
Related Articles
  1. Simple Moving Averages Make Trends Stand ...
    Active Trading Fundamentals

    Simple Moving Averages Make Trends Stand ...

  2. A Primer On The MACD
    Technical Indicators

    A Primer On The MACD

  3. Support And Resistance Basics
    Active Trading Fundamentals

    Support And Resistance Basics

  4. Continuation Patterns: In-Depth Look ...
    Charts & Patterns

    Continuation Patterns: In-Depth Look ...

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center