Trends

TrendsLeçon 8 sur 93 min de lecture

The line chart

When candles get noisy, switch the chart to a line. Colour and shape disappear, direction is obvious, and the highs and lows are still there to mark.

Candles carry a lot of detail. When you are only after the direction, that detail gets in the way.

Strip the chart back

Change the chart type from candles to a line. A line chart joins the closing prices and drops everything else.

Colour, wicks and candle shapes are gone. What is left is where price went.

Figure 1 · The same gold chart shown twice, as candlesticks on the left and as a single closing price line on the right

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