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Line Chart

Line chartA line or a graph chart is a chart which shows information in the form of points at different data, regularly called indicators which are linked by straight lines. This type of chart is often used for technical analysis purposes. It is different from a scatter plot in a way that the data points are not scattered and joined with a straight line. It basically shows how one thing is related to the other and what the effect of the change is in one in respect to the other.  It is often used to observe the trends in stocks data over different intervals of time. There are two axes in the line chart. One is the X-axis and the other is the Y-axis. There is no Z-axis used in the line chart. Each of the axes shows different data to be analyzed and compared. For example if we place stocks on X-axis in dollar value ($) and economy boom on Y-axis in period (year), we can analyze the speed of that object at different intervals of time and join the data points to get a line segment. Before constructing a line chart/graph, first the stocks data collected through experimentation or observation is put into a table, known as a visualization table.

This table helps show the exact values but to understand the underlying pattern, we have to put those values against each other and construct a line graph which gives the most accurate analysis and point out the trend(s). It proves out to be very helpful in understanding the relationship between two elements. For the analysis of the stock value against period intervals, we will first collect the stock value of a sample public or private organization for several years and plot it against the corresponding year to see  and analyze the company’s performance over time.

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About Emaad Qureshi