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What is a Line Chart?
The Line chart is a type of basic chart that displays the price movement of a security over a given period of time. It is created by connecting a series of data points with a help of a straight line, which makes it very easy for traders to identify potential trends and patterns in the market.
Given above is a classic example of a Line chart that illustrates the monthly subscriber growth of a video-streaming website in a year. The website has achieved a tremendous boost by the year-end.
If you have ever studied mathematics you must have seen or studied the line chart. just like above understanding the line chart is very easy. However, trading with the line chart is a different thing. Donât worry, in this article, I will teach you properly how to trade and invest your money using the Line chart on Pocket Option.
How to configure the Line chart on Pocket Option?
To configure the line chart on the Pocket option, log in to your Pocket Option account. In case, you donât have one fill out the form below.
Once you have logged in. click on the chart button and select the Line chart option from the menu.
Thatâs it!! The Line chart will be applied to your trading dashboard and now just select your desired currency you want to trade on.
How to trade with the Line chart on Pocket Option?
You can trade with a Line chart using multiple indicators like MACD, Moving averages and more. In this article, I am going to combine the chart with the Stochastic indicator.
In order to trade with the Stochastic indicator. Firstly, you need to add the Stochastic Oscillator to the chart from the indicator section.
Now, you need to look for potential trading opportunities. When the two-moving averages line intersects each other below line 20 and the short-period moving average line is more dominant. It signals an upcoming bullish trend and you can consider placing a buy trade here.
Similarly, When the two-moving averages line intersects each other above line 80 and the long-period moving average line is more dominant. It signals an upcoming bearish trend and you can consider placing a sell trade here.
In case you donât know
The Stochastic Oscillator is a very popular technical analysis tool that helps traders to find possible trends and reversals. This indicator was developed by George Lane in 1950s and is widely used by traders in the financial market.
This indicator is widely used for highly volatile assets and you can easily find the trends and reversals using the same. This indicator is made from the composition of two moving averages line %k and %d. where the % d line is the short period moving average line and vice versa the % k line is a long period moving average line. When the above two moving averages lines intersect each other it generates buy and sell signals and we can place trades accordingly.
Try the Line Chart on the Pocket Option demo account for free. Join Pocket Option Today and get $10, 000 in your demo account.
