Line Chart
A line chart connects one price per period — usually the close — into a single line, which makes the overall direction easy to see.
A line chart joins one price per period, usually the close, into a single line. That makes the overall direction easy to see, but it hides the high, low and open. Traders often use line charts for the big picture and switch to bars or candles for detail.
- Category
- Technical Analysis
- Reading time
- 2 min
- Also called
- Close-only chart, Line graph
- Updated
Line charts in plain words
A line chart simply joins each period's closing price with a line.1
It makes the overall direction of price easy to see.1
Unlike bar and candlestick charts, it doesn't show each period's high or low.2
How to read a line chart
Worked examples
Example 1 — Uptrend
UptrendHypothetical closes: 10, 11, 10.5, 12, 11.5, 13.
| Highs | 11 → 12 → 13 |
Line charts help visualize the direction of prices; here, higher highs.1
Example 2 — Hidden range
Range hiddenA hypothetical day closes flat but traded 5% up and down.
| Close change | 0% |
| Intraday range | 10% |
With no high-low range on a line chart, the intraday swing simply doesn't show.3
Example 3 — Close-only data
Line by defaultA hypothetical fund publishes one price a day.
| Data | Close only |
When a market only has closing prices, a line chart is the natural default.1
Line vs candlestick
| Aspect | Line chart | Candlestick |
|---|---|---|
| Prices | One per period | Four per period |
| Clutter | Low | Higher |
| Range | Hidden | Shown |
| Best for | Direction | Detail |
Where traders use it
Trend
Seeing the Trend.
Levels
Drawing a Trendline.
Averages
Comparing with a Moving Average.
Charts
The simplest Trading Chart type.
Advantages and disadvantages
Advantages
- Very clear direction.
- Less cluttered.
- Works with close-only data.
Disadvantages
- Hides high, low and open.
- Can miss intraday swings.
- Not enough for stop placement.
- Depends on which price is plotted.
Going deeper
Read as far as you need. Each level builds on the one before it.
Why closes
Beginner
Many traders see the close as the most important price of the day, more than the open, high or low.3
Trade-off
Intermediate
The trade-off is detail: a cleaner chart, but no high-low range.3
Data limits
Advanced
If only end-of-day prices exist for a market, charting tools usually draw a line chart by default.1
Common mistakes
Setting stops from a line chart
Check the real range.
Ignoring the timeframe
Each point is one period.
Assuming it shows highs
It shows closes.
Over-reading small wiggles
Look at the big picture.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- A line chart joins one price per period.
- Usually the close.
- Great for direction.
- Hides the range.
- Switch to bars or candles for detail.
Frequently asked questions
Can a line chart use other prices?
Is it good for beginners?
Should I trade from it?
Further learning
- Trading Chart
Chart types.
- Candlestick
More detail.
- Trend
Direction over time.
- Trendline
Drawing trends.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- StockCharts ChartSchool. TA 101 – Part 4 (opens in a new tab) Checked .
- CMC Markets. Trading Charts: Learn to Read Price Charts (opens in a new tab) Checked .
- StockCharts ChartSchool. What Are Charts? (opens in a new tab) Checked .
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.