Linear Charts
Linear charts are the simplest chart to read, they display a line from one closing price to next. Long term investors lean towards linear charts as they focus only on the closing price, for long term investors this removes the “noise” of the intra-period price moves.
However, some traders find linear charts restrictive, they want to know what has happened to price during a period.
Over the next few lessons, we’re going to show you the same market and price data but displayed as different chart types. You’ve seen linear before, here is a live daily linear chart of Apple:
- Linear charts connect the closing prices for each time period using a simple line.
- Linear charts are normally used by long term investors because they remove the intra-period noise in price.
- However, some traders find linear charts restrictive, they want to know what has happened to price during a period.