Vertical Line Charting

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DEFINITION of 'Vertical Line Charting'

A technique used by technical traders and market technicians to track the price trend of a security, in order to forecast future price moves. In vertical line charting, a security's daily price action is summarized by a vertical bar. The security's daily high and low prices are denoted by the top and bottom of the bar, respectively, while its opening and closing prices are indicated by very short horizontal bars to the left and right of the vertical bar, respectively.

BREAKING DOWN 'Vertical Line Charting'

Vertical line charting may appear simplistic, but it can convey a wealth of information to seasoned market practitioners. It generally forms the basis upon which more advanced technical analysis is carried out for a security.

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