7.2What is a stock chart?
1What is it?
A stock chart plots price over time. The most common types are line charts (joining closing prices) and candlestick charts (showing open, high, low and close).
2Why does it exist?
A picture of price makes trends and turning points easy to see.
3Diagram
4Quick revision
- Charts plot price over time.
- Line = closes only; candles = full OHLC.
- Y-axis price, X-axis time.
5Knowledge check
Q1. What does a line chart join?Show answer
Closing prices.
Q2. What does OHLC stand for?Show answer
Open, High, Low, Close.
Q3. Which chart shows more detail?Show answer
Candlestick.
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