Line Charts

Line charts are a straight line charting format that uses only one price point. Line charts are ideal for finding intraday support levels for momentum, swing, and day trading stop losses on stocks. By using intraday line charts, a trader can keep a much tighter profit stop and trade stocks for greater financial gain. Line charts also provide a simple straight forward view of long term price action for stocks and indexes.

However, line charts should not be used for entry or exit signals. And they should not be used for daily price evaluation for swing, position, and options players. Candlesticks are the better choice for these styles of trading.

In many ways, line charts are similar to indicators in that you are looking at a straight line of price action. As you can see in the above chart, there were times when this stock moved up sharply to form peaks and times when it moved in a sideways choppy pattern. Understanding what these patterns mean will give you sufficient knowledge to trade stocks successfully.