Understanding Stocks

LET’S GET TECHNICAL: INTRODUCTION TO TECHNICAL ANALYSIS 109
weeks, months, or years. Some traders look at several charts at once,
each with a different time frame.
Line, Bar, and Candlestick Charts
Line Charts
A line chart basically plots the closing prices of a stock over a specific
period. A line connects the price points. Although line charts are easy
to read and understand, they are not as popular with experienced shortterm
traders because they don’t provide very much information. They
are most useful when they are combined with other technical indicators.
However, many newspapers and television programs use line
charts because they are so visually appealing. Figure 11-1 is an example
of a line chart.
CSCO Daily
Volume
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Figure 11-1 Line chart
12/06/02
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