Market analysis is a critical aspect of successful trading. It involves examining historical and current market data to identify trends, patterns, and trading opportunities. One tool that traders can use to conduct market analysis is TradingView, a popular charting and trading platform that provides a range of advanced tools and features.
Analyzing the Markets with TradingView
TradingView is used by millions of traders worldwide to analyze and trade financial markets such as forex, stocks, and cryptocurrencies. It offers a comprehensive suite of charting tools, technical indicators, and drawing tools and a community of traders who share ideas and insights on market trends.
This article explores how traders can use TradingView to analyze markets and make profitable trading decisions. We will cover the basics of TradingView and more advanced techniques for technical and fundamental analysis, backtesting, and strategy development.
Getting started with TradingView
Before diving into market analysis with TradingView, you will need to create an account. Signing up for an account is free and straightforward, and once you have an account, you can start exploring the platform.
TradingView offers multiple subscription plans to cater to the varying needs of traders. Here is an overview of the different plans:
Basic Plan: This plan is free and provides access to most of TradingView’s capabilities, with some limitations. Traders can only view one chart at a time and only create one alert. The Basic plan is a great way to get a feel for the platform.
Pro Plan: With the Pro subscription, traders can access more features, such as creating up to 10 server-side alerts and an ad-free desktop experience. The Pro Plan comes with a monthly fee of $14.95.
Pro+ Plan: The Pro+ plan includes all the features of the Pro subscription, plus the option to define indicators and export chart data, among other benefits. The monthly fee for a Pro+ account is $29.95.
Premium Plan: For traders who want access to all TradingView has to offer, the Premium plan is the way to go. This plan includes all the features of the Pro+ account package and the ability to create up to 400 alerts, unlimited alert lifespans, and more. The current monthly pricing for the Premium plan is $59.95.
Navigating the TradingView platform may take some time to get used to, but the platform is user-friendly and intuitive. The main screen is divided into several sections, including the charting area, watchlist, and news feed. You can customize the platform’s layout by dragging and dropping the different sections to suit your preferences.
Technical analysis with TradingView
Technical analysis is an approach to market analysis that involves studying historical market data to identify patterns, trends, and potential trading opportunities. TradingView is an excellent platform for conducting technical analysis, with a range of powerful tools and features for analyzing market data. TradingView offers a range of powerful charting tools that traders can use to analyze market data. The platform offers a variety of chart types, including bar charts and candlestick charts.
TradingView offers over 100 technical indicators, including popular indicators such as moving averages and RSI. Add these indicators to charts to help traders identify trends and potential trade entry and exit points. TradingView also allows traders to customize indicators and create their own custom indicators.
Drawing tools are another important feature of TradingView’s technical analysis tools. Traders can use drawing tools to mark charts with trend lines, support and resistance levels, and other visual aids. These tools can help traders identify potential opportunities and develop a plan.
Loading instruments on TradingView trading charts
To begin analyzing a specific instrument on TradingView, you must first load it onto your chart. To do this, navigate to the upper right corner of the screen, next to the ‘hamburger menu,’ and click on the currently loaded instrument. This will open a pop-up window displaying all of the instruments your broker offers on TradingView. From there, select the desired instrument, or search for it using the provided search function. If you have any open trades on the instrument, you can load its chart by clicking it.
Adding a comparison
You can also compare the performance of the instrument you have loaded against other financial instruments or indices. To do this, click on the plus symbol next to the instrument pair you currently have loaded.
Choosing timeframe
Depending on your trading strategy, you may need to view your chart in different reference timeframes. Next to the instrument pair and plus symbol, you will see a letter, or a letter and a number, each symbolizing a different period, such as one hour, one day, or one month.
Choosing the type of chart
TradingView offers various chart types to cater to different preferences, including bars, candles, hollow candles, line, area, baseline, Heikin-Ashi, Renko, Line Break, Kagi, point-and-figure, and range. It is up to you to choose the chart type that most suit your trading strategy.
Using indicators
To enhance your analysis, TradingView provides a wide range of technical indicators that you can add to your charts, such as Fib levels, Bollinger Bands, RSI, and SMA. Click the indicators icon next to the chart symbol customization to add an indicator.
Saving indicator templates or using community-created templates
Using a unique set of indicators, you can save your preferred settings as a template, share it with the community, or use templates created by other traders.
Customizing charts
You can customize the appearance of your chart to better analyze it or to share trade ideas. Click on the gear symbol in the upper right corner of the chart to open a pop-up window with extensive customization options. These options enable you to change and adapt the chart symbol, status line, scales, appearance, trading, and events. You can also access chart customization by double-clicking on a candlestick.
On-chart trading functions
TradingView also offers on-chart trading functions, which enable you to quickly adjust stop-loss, add take profit, and close your trade. If you have an open position, you can hover over it, click and drag your take profit (displayed as TP) to the level you want it to execute at, and adjust the stop-loss accordingly. You can also double-click on your position to open a side menu that displays its size and profit, enabling you to adjust your levels. To open a trade, click on the blue ‘buy’ or red ‘sell’ rate in the chart’s upper left corner.
Adding alerts and orders
Finally, you can add alerts and orders directly on the chart. By hovering towards the ‘rate’ (Y-axis) scale, you will see a black box displaying the rate your cursor is close to. You can click on the ‘+’ symbol next to this box to add an alert at that rate, set a limit order, create a new order from the pull-out menu on the right, or draw a horizontal line at the specific rate.
Fundamental analysis with TradingView
Fundamental analysis is an approach to market analysis that involves studying economic and financial data to evaluate the intrinsic value of an asset. TradingView offers a range of tools and features for conducting fundamental analysis, including financial news and economic calendars.
TradingView’s news feed is an excellent resource for traders looking to conduct fundamental analysis. The news feed provides real-time updates on financial news and events that can impact the markets. Traders can filter the news feed by asset, region, and type of news to focus on the most relevant information for their trading.
TradingView’s economic calendar is another valuable resource for traders conducting fundamental analysis. The economic calendar provides a schedule of upcoming economic events, such as central bank meetings and economic releases. Traders can use this information to plan their trades and adjust their positions based on anticipated market movements.
In addition to these features, TradingView offers a range of fundamental indicators that can help traders evaluate the intrinsic value of an asset. These indicators include measures of economic growth, such as GDP and employment data, and financial ratios, such as price-to-earnings and price-to-sales ratios.