When it comes to technical analysis, charting tool and price chart are key. A cryptocurrency chart is basically a graphical visual representation of what is happening in the market, in terms of price action over a period of time. At the moment, there are different types of charts developed for visually representing price information on any cryptocurrency asset over a time period.
A line chart is one of the common types of charts that are available on various charting platforms such as tradingview. A line chart is basically a type of chart that simplifies price information on a chart. On a Line chart, each time period has one point which represents the closing price of that time period. Each point on the line chart is connected to the previous point by a line. This means that a continuous line connects the closing price of each period to the previous closing price. This continuous line connection between the different points forms the line chart. A Line chart can be used on any timeframe for technical analysis of any cryptocurrency asset.
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Line chart on AAVE/USDT Chart
The uses of Line charts
One of the main use of a line chart is for simplicity of the price information of the market, by visually representing the changes in the closing price of any cryptocurrency asset over a time period.
Line chart can also be use quickly identify support and resistance areas on the price chart
Line chart can be used to quickly identify price direction or trends or patterns in the market because of its simplicity.
Line chart can be used to reduce the noise caused by price fluctuations especially seen when using the candlestick chart from open, highs and lows prices. The line charts helps to reduce the noise by only representing the closing prices.
Line charts is used by a lot of traders during technical analysis to quickly identify changes in the market over a particular period of time
