The Line Chart

Line charts are one the most basic types of charts used in finance in general and forex in particular. This type of chart is formed through a line connecting a series of data points together – usually, line charts display lines drawn from one closing price to the next.

Below is an example of a line chart for USD/JPY:

Line Chart

We clearly see the general price fluctuation of this currency pair over a given period of time (a year in our example). One of the main reasons that make line charts so popular is that they record closing prices, one of the most important prices to keep track of. Other common forex charts include the bar chart and the candlestick chart.

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