WHY USE TRADINGVIEW?
Imagine yourself in a car race with a winning prize of $1,000,000.
The race involves only 2 persons, yourself and your opponent. The both of you are to race on a straight track of 1000meters.
You are given a Honda CRX, which is a slow car.
Your opponent is given a Veyron Super Sport, which is one of the fastest cars in the world.
Picture from caranddriver.com
With the Honda CRX, it is 99.99% certain you will lose the race along with the $1,000,000
Funny, I know the comparing both cars is not fair. But the truth is that the marketplace isn’t fair either.
Your broker offers you a no good charting platform to use and analyze your charts.
Every trader and investor out there is looking to profit from other market participants with every competitive edge they have.
If you were given the Bugatti Veyron Super Sport, you will walk away the winner of the $1,000,000 prize.
The tool you use to trade matters a lot in your trading and investing performance. A good charting platform such as Tradingview will give you an improved performance and better results.
WHAT IS TRADING VIEW?
Trading view is an advanced financial customizable charting platform which is easy to use.
Traders use it analyze short term moves, investors use it to analyze long term moves.
GETTING TO UNDERSTAND THE TRADINGVIEW CHART WINDOW.
The trading view chart window is comprised of 5 parts:
- The chart area
- The top menu
- The bottom menu
- The right menu
- The left menu
THE CHART AREA
This is an area on the chart where your analysis is carried out. This area consists of your candles and every tool and indicators selected are seen on the charts.
These candles are graphical representations on your chart area with vertical axis representing price and horizontal axis representing time.
THE TOP MENU
- Symbol Search: This is where you select the financial instrument you are interested in. Instruments such as stocks, currencies, indicies, commodities etc
- Time Intervals: This is where you select the timeframes you want. If you are a scalper, you select the minute time frames. If you are a day trader, you select the hourly time frames.
If you have a long term bias, then daily and weekly timeframe is good for you.
- Candle, line, bar: This represents the graph plotted on the chart area. There are other options like the Hekini ashi.
- Compare or add symbol: If you want to add another financial instrument on the same chart area.
It is suitable for comparism. Example, comparing the Dow 30 with the S&P 500.
- Indicators & Strategies: Do you use a certain kind of indicator to perform your analysis or candlestick patterns to make buy/sell decisions? You can find them here.
- Fundamental metrics for stocks: You can find financial information of a certain company here such as Revenues, debts, gross profit etc
- Indicator template: Every indicator has its own purpose. Select customized indicator templates here to use and analyze your charts.
- Create alert: You don’t need to miss a buy or sell move again. Just create an alert and get notified about a potential move when you are not on your screen.
- Bar replay: Whenever you are watching a movie on your laptop or tablet. You can rewind an event or fast forward an event.
This tool is similar. You can rewind candles/bars to a previous time and date. You can play it or even fast forward it.
- Select layout: This is a split screen option. You can split your screen into two parts or more.
- Template: You can customize and save your template here.
- Chart properties: Everything that can be added or removed from the chart area is done here.
- Full screen mode: This is used to widen the chart area.
- Snap shot: This is used to take a snap shot of your screen.
- Share your idea: Here you share your idea with the community just like a Facebook newsfeed.
- Record your video idea: If you want to share your idea in a video format, pick this tool. It is good idea for social networking.
THE LEFT MENU
- Cursors: What will you prefer to use and navigate your charts? You can use an arrow, dot or a cross hair.
- Trend line tools: This tool is basically used to draw lines. It could be a diagonal or straight line.
- Gann & Fibonacci tools: These are tools used to pick out probable reversal, entry and exit points.
- Geometric shapes: This tool is used to draw certain shapes on your chart such as a rectangle, ellipse, triangle etc
- Annotation tools: This is used to add notes, texts, comments to your charts.
- Patterns: These are advanced patterns that helps you predict price movements.
- Prediction & measurement tools: These are tools that help you measure your pre-determined risk and returns. This tool is your friend, use it often.
- Icons: Add icons/symbols on your chart to remind or represent an idea of yours.
- Measure: This tool is used to measure the number of candles/bars on your chart.
- Zoom in: Select an area on your chart to zoom in and out.
- Magnet: Supposing you draw a trend line, the distance you covered is highlighted on the on the price bar and time bar.
- Stay in drawing mode: Let’s say you want to draw a tool (rectangular tool) multiple times. You don’t have to click on the rectangular tool multiple times.
You simply use the stay in drawing mode tool.
- Lock all drawing tools: After you must have drawn tools on your chart area. You simply use this tool to lock all drawings.
- Hide all drawing tools: This is used to temporarily hide drawings on your chart area.
- Remove drawings: This is used to remove all drawings on your chart area.
THE RIGHT MENU
- Watch list : Instead of watching all instruments, you prepare a list asset classes you are interested in based on certain conditions.
- Alerts: This tool allows you to create a buy/sell condition and alerts you whenever you are not on your screen. You can also view all alerts created here.
- Data window: This tool shows you where price opened and closed and also the percentage change of price for the previous day, hour or minute depending on the timeframe you are analyzing.
- Hotlists: This tool shows you the top volume gainers, percentage change gainers and losers in any stock exchange.
- Calendar: This tool shows the economic calendar and earnings calendar of companies of past, present and future dates.
- My Ideas: Just like Facebook, you click on your profile and see everything you have ever posted on Facebook.
Whenever you click my ideas, you see your ideas you have contributed in the Tradingview community.
- Public chats: This is a group chat where different people all over the world share in a discussion of a trading/investing topic or idea.
- Private chats: This is a tool you use to message someone privately.
- Ideas stream: This tool allows you to view people’s idea and react to it, just like Facebook news feed.
- Streams: This tool is similar to the ideas stream tool but this is specifically for recorded videos.
- Notifications: You can view your notifications here whenever someone reacts to your ideas.
- Order Panel: This tool is used to place trades on a financial instrument. This is only possible if you paper trade or you have connected a broker to Tradingview.
- DOM (Depth Of Market): This tool is an order book that shows you how many available open orders you can buy or sell at different prices for a security.
- Multi select drawing tools: This tool shows every drawing on your chart area. You can customize your drawings here.
- Help center: If you have any questions, this tool is always available for you.
THE BOTTOM MENU
- Screener: With many stocks, crypto pairs and forex pairs. You can’t analyze or invest in every one of them.
With screeners you can screen out instruments that don’t appeal to you.
- Text notes: You can type in some notes here and save it later, maybe for reference purposes.
- Pine editor: You have an idea of building a tool, robot or an indicator. You can type in your code using this tool.
- Strategy tester: Test a strategy by applying it on your chart. You can apply symbols, time or indicators.
- Paper trading: This tool is like a journal that shows all your previous and open trades.
It shows the price you bought/sold, your risk and your returns.
HOW TO USE TRADINGVIEW?
HOW TO SETUP YOUR CHART
Let’s say your chart is this:
And you don’t like it. So you will like to customize it to something you prefer:
What are the steps to follow to setup the chart above?
- Click on the Chart Properties on the top menu. A window pops up.
- Click on Symbol.
- For the body, wick and borders, click on the colors and change them to green and red.
- Click on Appearance.
- For the background color, change it to white.
- Click on Events.
- Tick show Dividends, Splits and Earnings on chart.
HOW TO DRAW AND WRITE ON CHART AREA?
On the chart you can see a ranging market.
So you want to draw a support and resistance to contain the range.
What are the steps you should take?
- Click on the Trend Line Tools on the left menu.
- Click on Horizontal Line.
- On the chart area, click on the point where you want the line to be drawn.
- Repeat the same process.
However, it is not smart to treat support and resistance as a line, rather treat it as an area.
In order to treat it as an area, you will use the rectangle tool.
- Click on the Geometric Shapes on the left menu.
- Click the Rectangle tool.
- Click one point (beginning point of the rectangle) on the chart area and drag to the next point (end point of the rectangle) and click once.
So you want to write something on the chart area.
How do you do this?
- Click on the Annotation tools on the left menu.
- Click on the Text tool.
A window pops up, write and customize your text the way you use Microsoft Word.
- When you are done, click on Ok.
HOW TO USE INDICATORS?
Supposing you don’t know the trend of the market from the same charts used above. That is, if price is in a range or up/down trending market.
To find out you can use the VWMA (Volume Weighted Moving Average).
If price is above the VWMA, it is an up trending market.
If price is below the VWMA, it is an down trending market.
If price and VWMA move between each other a lot, it is a ranging market.
P.S. You already know the market is in a range
A ranging market works well with momentum indicators, so you think of one of the momentum indicators you can use.
Your favorite RSI (Relative Strength Index) indicator comes to mind.
How do you put up these indicators on your screen?
- Click on Indicators and Strategies on the top menu.
- A window pops up, type RSI on the search bar.
- Click on Relative Strength Index.
- Repeat the same process.
- Search VWMA on the search bar.
- Click on VWMA.
HOW TO CUSTOMIZE TOOLS?
This is very easy to use. It is just like editing your pictures in your phone gallery or editing texts on Microsoft word.
It doesn’t matter the tool you are using whether lines or symbols, the customization options work the same.
Example, you want to customize a rectangle.
Simply click on the rectangle and the customization options pop out.
You can delete it, clone it, copy it, and change the styles or color.
HOW TO CREATE YOUR OWN WATCHLIST?
As a stock investor you can’t focus on all the stocks, you create a list of few stocks of interest and watch them closely.
You do the same as a scalper/day/swing trader, you prepare your watch list for the day or week.
- Click on Watch list & Details on right menu.
- A window pops up, on the top left of the tab click the small arrow
- Click create new list.
- On your new list tab, you click on the Add Symbol to add a financial instrument to your list.