Can someone tell me what the blue line in this chart represents? http://finviz.com/quote.ashx?t=LPTH&ty=c&p=d&b=1

I'm guessing EMA. Probably wrong, though.


The curved lines (on my screen orange, yellow and pink) are simple moving averages. The fuchsia and blue straight lines are automatically generated trend lines. Those lines are attempting to show how a stock is trending by showing potential bounce points and are commonly used in technical analysis (TA).

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    Actually the blue and pink lines are a trend channel, which can be manually generated most times. A break above the pink line is a signal to enter the trade. – user9822 Jan 13 '16 at 20:41

My guess is that both the blue and pinkish lines are hand drawn by someone. The blue line indicates 'higher lows' while the pinkish line represents 'higher highs'. Together they form a trading channel in which you can expect future prices to be (unless there is some unanticipated event that occurs).

Edit: since the price broke out above the trading channel at the start of the year (and is verified by the increase in volume at that time) something must have occurred to increase the value of the stock.

Edit2: this news likely explains the breakout in price.

Edit3: this chart shows that the stock price is now 'seeking equilibrium'. The price will, likely, be volatile over the next few days or weeks.

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