As a beginner in financial markets, the daunting appearance of trading might be off-putting. There is a wide range of assets, strategies, and analysis tools to consider, making it challenging for inexperienced traders. However, online charting tools streamline the process.
TradingView is known for its powerful charting tools, which have gained massive popularity among traders, both new and experienced. But it's important to learn how to read the chart; otherwise there is no point in using TradingView.
Steps to use TradingView charts
Charts are one of the most important aspects ofTradingView, which comes with diverse options for customisation, indicators, and templates. Once you choose your preferred TradingView chart type, you can personalise the chart and take advantage of it. Here is how to use TradingView charts to make the most of available features.
Choose your trading instruments
First, select the financial instrument you want to analyse, whether it’s indexes, stocks, commodities, precious metals, forex, or cryptocurrencies, and set up a Watchlist of your chosen instruments.
Add a comparison feature
Now, you can compare your chosen asset with another, like the S&P 500. There is a plus symbol next to the currently loaded instrument pair, which you can use to add another instrument to your chart to see how your selected asset stacks against the broader market.
Select a timeframe
Your chart should also cover a timeframe. Symbols to select different time periods, like one hour, one day, or one month, are beside the plus symbol. The timeframe should match your strategy, as it allows you to tailor your analysis based on the specific intervals.
Pick a chart type
There are different kinds of charts on TradingView, and your choice depends on your personal preference. These include the bar chart, candlestick charts,Heikin Ashi, Renko, and Ragi charts. Each chart offers a unique perspective on the market’s movement.
Add your desired indicators
Now, add your TradingView indicators, which provide insight into the market movement, momentum, volatility, and trend directions. Some indicators include Fibonacci levels, the Relative Strength Index, Bollinger Bands, and the Simple Moving Average.
Save the template
It’s a good idea to save your indicator template after creating the TradingView chart. This way, you can access the template at any time without having to set it up again. You can also share charts in the community and explore those made by other traders.
Customise the chart
You can completely customise the appearance of your TradingView chart. By double-clicking on a candlestick, you can change the symbol, scales, trading, status line, appearance, and events.
Important elements of trading charts
To read a TradingView chart, you need to understand the key components of the chart:
● Candlestick: This represents the specific time period and shows the high, low, opening, and closing price of the chart. It comes in different colours, showing whether the price is higher or lower than the opening.
● Bar Charts: These charts only show the high, low, and closing prices without differentiating the colours.
● Volume Bars: These are displayed below the price charts, showing how many shares have been traded within a time period.
● Timeframe: This can be set to minutes, hours, days, weeks, or months, allowing you to assess the price movements over a selected time period.
● Trend Lines: These lines are drawn to connect price points, showing whether the trend is upward or downward.
● Support and Resistance Levels: You can also see horizontal lines drawn at price points, at the support or resistance levels.
How to interpret trading charts
To interpret a trading chart, start by identifying trends. Look for the patterns in the trend lines and support and resistance levels over time to check the price trends. Also, analyse the candlestick patterns by learning about candlestick formations like bullish engulfing and bearish shooting star.
Don’t forget to check the volume of the instrument, as high volumes can indicate a more favourable investment. It’s also important to learn more about technical indicators like moving averages,Moving Average Convergence Divergence (MACD), and Relative Strength Index. These calculations provide more insights into market momentum.
Top features of TradingView charts
TradingView comes with several features. All charts are fully customisable, allowing you to adjust colours, indicators, and chart types. It also provides access to diverse markets, including stocks, forex, cryptocurrencies, indices, and commodities.
The charts offer access to real-time market data, giving traders the latest information before investing. They also come with a vast selection of technical indicators and drawing tools, like trendlines, Fibonacci retracements, and shapes.
You can create watchlists on TradingView to track your favourite assets and also practice trading with virtual money using the paper trading feature. Other settings include price alerts and notifications engaging with a social community, adding an economic calendar, and mobile accessibility.
TradingView charts also offer strategic backtesting, and you can further customise the chart with custom scripts and indicators. On your chart, set up stop-loss and take-profit levels to manage risks, and collaborate with other traders by sharing your charts.
Taking advantage of TradingView charting features
TradingView’s advanced charting features are valuable tools for all traders and knowing how to use them correctly will help to level up your trading game.
