Chartered Market Technician (CMT) Practice Exam 2025 – Your All-in-One Guide to Exam Success!

A line chart is best suited for visualizing trends over a longer time period because it effectively illustrates the progression of data points in a continuous manner, making it easy to observe general trends over time. The line connects individual data points, providing a clear picture of upward or downward movements in values, which is particularly useful for analyzing trends in financial markets, economic indicators, or any time series data.

While candlestick charts, bar charts, and scatter plots each have their merits, they are generally better suited for specific types of analysis. Candlestick charts are mainly used in short-term trading to provide information about price action within a specific time frame, representing open, high, low, and close prices. Bar charts, although informative, can sometimes clutter the view when tracking trends over extended periods due to the increased detail in each time interval. Scatter plots are particularly useful for displaying the relationship between two variables, but they do not effectively convey the trend over time as a continuous line would. These characteristics make line charts particularly advantageous for trend analysis across longer durations.