The Load-Displacement (or Load Extension) and stress strain diagrams are two diagrams identical in shape. See below.
The main visible difference is the values on axis (which are at first glance neglected).
So, it is natural when you first encounter them to question why do you want to learn about a stress and strain diagram which has obscure quantities (as in not directly measureable ), instead of the load-displacement diagram that has quantities that are directly measured and commonly understood.
The data you obtain from an tensile specimen experiment is the Load-Displacement curve. From the load-displacement you obtain the stress-strain by:
- stress is load over original cross-section A
$$\sigma= \frac{F}{A}$$
- strain is displacement over original length L
$$\epsilon = \frac{\Delta L}{L}$$
In both cases you divide with a constant quantity, so the shape does not change (as you can see in the image above).
What's the difference.
Apart from the units there is a significant difference.
The stress-strain curve is relevant to all specimens made from this material
The Load-extension curve is relevant to specimens with only one combination of L and A.
So if you take a specimen with double the thickness, then the Force-extension diagram will change. (the force will double for the same displacement). However the stress vs. strain curve will remain exactly the same.
So the use of the stress-strain curve is that you can use it to predict the behaviour of (almost) any geometry even if you haven't tested it.