Using-the-Line-Chart-in-Foreign-Currency-Trading

Foreign currency trading line charts are the most basic of the charts used for technical analysis.

The line chart is a simple visual representation of data, which plots the closing price of a single day and over the course of weeks and months connects the dots. The following image shows an example of a basic line chart:


The foreign currency trading line chart’s simplicity is often seen as its strength, but offers very little insight into the market’s volatility or movement within the time frame of a single day. As most Forex traders are ‘day traders’ (often in and out of positions in a 24 hour period) a line chart, even if plotted by the hour, would still leave much to be desired.