AtoZ Markets Ė We have three market analyses in forex trading: technical, fundamental, and sentiment analysis. These three analyses work hand in hand to help traders develop good trading ideas and see great trading opportunities. We consider the first one, technical analysis, the framework. It is the study of the price movementís history, present and future potential actions. Under technical analysis, traders and analysts work around charts all the time. Today, we are going to discuss the first type, which is the line chart.

The line chart

A line chart is one of the three types of charts in the technical analysis together with the bar and the candlestick chart. Traders and analysts commonly use a line chart to see the bigger picture of the price. The line starts from one closing price to the next closing price. As we connect these two lines, we can visualize how the price movement behaved in general over a period of time.

This chart is not as complex as the others. Hence, it is simple and straightforward when we said that traders only use this to see the bigger picture. While it lets us know the closing price at the latter part, but we will not know what happens next. A line chart also does not provide too much detail about the priceís behavior in that given time frame. However, do not be worried because other charts can help you know more about the details, like a bar chart.

The line chartís prominent role in helping traders is to let them visualize and compare one closing price to the next one. Some traders pay more close attention to the closing price and ignore any other fluctuations within that trading session. A line chart also shows a slope that lets us see trends easily.

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