6.2.1.2. Line Charts and Point and Figure Charts
Some technical analysts believe that a line chart performs better for certain kinds of commodity analysis. The line chart only tracks the daily closing price, often considered the most important price of the day. Its simplicity is its greatest advantage, particularly in identifying long-term trends and finding certain difficult chart patterns.
Unlike the bar and line charts, the point and figure chart does not track price according to time. Rather, it tracks price movements with x’s and o’s—x’s represent upward movements, while o’s represent downward movements. When constructing the chart,