Blockchain and Cryptocurrency Advanced - Difference Between Line Charts and Candlestick Charts

The line chart contains less price information on the chart, with more focus on the closing prices, which makes it have more simplicity.

While the candlestick chart has more price information on the chart which makes it have more complexity.

The line chart is visually represents the closing price information connecting the closing prices using a line. While the candlestick chart makes use of candles with body and wick to visually represent the price information. Each candlestick represents the opening, closing, highs and lows prices.

Line chart helps to remove the noise from price movements and focuses more on the closing prices. This makes it easier to understand the overall direction of the market for long term traders. While candlestick chart offers more information on the price movements, making it great for short term traders.

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. While,

On a Candlestick chart, there are more price information for each time period. Each candle on the candlestick chart visually represents different price information such as the open, close, highs and lows prices. This means that the open price at the beginning of the time period, the close price at the end of the time period, and the high and low prices reached in the time period.

The line chart only has a line which moves in the direction of the closing prices. While a candlestick has red and green candles depending on the direction of the price. Red candles shows that the price is bearish and green candles shows that the price is bullish.

Because of the simplicity of the line chart, it doesn’t provide much information on what is happening in the market. While a candlestick chart provides more information on what is happening in the market.