Technical analysts use three types of charts: line charts, bar charts and candle-stick charts. Line charts typically connect a stock's closing price into a single line, during a designated period of time. For example, look at the figure below.The daily line chart of a certain stock illustrates the daily closing prices of that issue from October 2011 to February 2012, drawn into a single line.
Line charts are handy for comparing stocks to other stocks or indexes. If you overlay a related index over your stock's chart - you can instantly measure the stock's strength as compared to the overall industry group where it resides, as indicated in a single, straightforward line.
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