DEFINITION of 'Line Chart'

A style of chart that is created by connecting a series of data points together with a line. This is the most basic type of chart used in finance and it is generally created by connecting a series of past prices together with a line.

Line Chart

BREAKING DOWN 'Line Chart'

As you can see from the chart above, a line chart can give the reader a fairly good idea of where the price of an asset has traveled over a given time frame. Since the closing prices are often seen as the most important ones to keep track of, it is not difficult to see why line charts have become so popular. Other popular styles of charts include, bar charts, candlestick charts and point and figure charts.


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