A line graph connects individual data points, which usually display quantitative values over a specified time interval.
Line graphs consist of two axes: the X-axis (horizontal) and the Y-axis (vertical), which are represented graphically as (x,y).
In technical analysis investing, line charts are very informative, allowing the user to visualize trends.
Although line charts are used in many different areas for a variety of purposes, their most common function is to provide a graphical representation of how values change over time.
In finance, line charts are used to visually represent values over time, including changes in security prices.
The Accumulation/Distribution Line (A/D) measures the supply and demand of an asset or security by looking at where price closed in a period range and then multiplying that by volume.
A bull trap means a reversal that forces market participants who are on the wrong side of the price movement to close positions with unexpected losses.
A bullish engulfing pattern is a candlestick pattern that forms when a small black candlestick the next day is followed by a large white candlestick whose body completely overlaps or engulfs the body of the previous day’s candlestick.
Capitulation occurs when a significant proportion of investors give in to fear and sell within a short period of time, resulting in a sharp drop in the price of a security or market against a backdrop of high trading volume.
Consolidation is a technical analysis term used to describe the price movement of a stock within a given range of support and resistance over a period of time.
The Directional Movement Index (DMI) is a technical indicator that measures both the strength and direction of price movement and is designed to reduce false signals.