Line Forex Charts

In technical analysis the technical traders use various types of price charts. The simplest of these types of charts is the line chart which is used to obtain an overview of price movements in the market. In this case it shows the closing prices at selected intervals. Line charts are very clear and facilitate the detection of the most obvious chart patterns but lack the detail level offered by bar charts and Japanese candlestick charts.

In these price charts the points for price are joined by lines. In general the price used is the closing price of the period (which may be 5 minutes, 1 hour, etc..), but it can also display the average price, the buy/sale price, and many other options that vary according the trading platform that we use.

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What is price action?

Price action is a common term used in trading to refer to the analysis of the movements made by the price of a particular asset or financial instrument in the market.
Although it is included in the technical analysis, the analysis of price action does not use any technical indicator and the forecast of the future price trend is made based on the interpretation given by the trader of the price movement and not by the value shown by an indicator.
Price movements as a time function can be represented in the form of price charts, tables or other graphics. When price charts used other related tool analysis of chart patterns, often included in the analysis of price action, although not all traders agree this classification.

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