Line Chart
A chart that joins each period's closing price with a continuous line, discarding the open, high and low.
How it is identified
Test: exactly one value per period, conventionally the close, is plotted and connected
Unit
qualitative
In depth
By discarding three of the four prices, a line chart removes intraday noise and makes longer-term structure easier to see, which is why it suits multi-year views and index comparisons. The same simplification hides gaps, spikes and reversals that matter for anyone trading within the period. It is also the only sensible chart type for series that have no intraday range, such as mutual fund net asset values or economic data. Comparing a line chart to a candlestick chart of the same security is a good way to see how much apparent pattern is an artefact of intraday noise.
Worked example
A stock trades between ₹494 and ₹512 during a session and closes at ₹504. The line chart plots a single point at ₹504; the ₹18 range that triggered every stop-loss that day is entirely invisible.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Line Chart” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.