10 BEST TOOLS FOR TRADING
These Tools are only available on Tradingview.com. You can quickly sign up with your email id and use it. It is completely free
1. TREND LINE
- It is used for trend analysis to identify the trend
- It is also used for trendline pattern
- Establish price trend: Uptrend, downtrend, or sideways
- Draw a trendline with at least three connecting swing points
- Extend the trendline into the future
- A) Wait for the price to touch the trendline
- B) Set a limit order at the trendline (adjust as the price moves)
- Enter a trade in the direction of the trend when the price has touched the trendline
- Place a stop-loss order under the previous swing low in an uptrend (above the previous swing high in a downtrend)
- Set a take profit order at least 2:1 the size of the stop loss
1. 2. HORIZONTAL LINE :
It is used for drawing support and resistance
1 3.PARALLEL CHANNEL TOOL :
To draw a channel pattern
The parallel channel tool is a technical analysis tool used to identify the trend and potential areas of support and resistance in a financial market. It is created by drawing two parallel lines around the price action, with the upper line connecting the swing highs and the lower line connecting the swing lows. The space between these two lines creates the channel, which can help traders identify potential trading opportunities.
Here are some examples of parallel channels:
1. Uptrend Channel: In an uptrend, traders can use a parallel channel tool to identify potential areas of support and resistance. The upper line connects the swing highs, while the lower line connects the swing lows. Traders can look for potential buying opportunities near the lower line or potential profit-taking opportunities near the upper line.
2. Downtrend Channel: In a downtrend, traders can use a parallel channel tool to identify potential areas of support and resistance. The upper line connects the swing highs, while the lower line connects the swing lows. Traders can look for potential selling opportunities near the upper line or potential profit-taking opportunities near the lower line.
3. Sideways Channel: In a sideways market, traders can use a parallel channel tool to identify potential areas of support and resistance. The upper line connects the swing highs, while the lower line connects the swing lows. Traders can look for potential buying opportunities near the lower line and potential selling opportunities near the upper line.
4. Broken Channel: Sometimes, a price action will break out of a parallel channel, indicating a potential change in trend. Traders can watch for a break above the upper line to indicate a potential uptrend or a break below the lower line to indicate a potential downtrend.
It is important to note that parallel channels are not always perfect indicators of support and resistance, and should be used in conjunction with other technical analysis tools and fundamental analysis. Additionally, it is important to manage risk by placing stop-loss orders and not relying solely on parallel channels for trading decisions.
2. 4. FIBANOCCI RETRACEMENT:
It is an entry tool
To draw a Trend-Based Fib Extension, three points are needed. Once the three points are set, the level lines are drawn to the Fibonacci sequence. The first point chosen is the start of a move, the second point is the end of a move, and the third point is the end of the retracement against that move.
Fibonacci retracement is a technical analysis tool used to identify potential levels of support and resistance in a financial market. It is based on the idea that prices will often retrace a predictable portion of a move, after which they will continue in the original direction.
The Fibonacci retracement tool uses horizontal lines to indicate areas of support or resistance at the key Fibonacci levels before continuing in the original direction. These levels are calculated by taking a high and low point on a chart and dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, and 100%.
Here are some strategies for using Fibonacci retracement:
1. Identify the trend: Determine the overall direction of the market and draw the Fibonacci retracement levels from the swing high to the swing low in an uptrend and from the swing low to the swing high in a downtrend.
2. Look for levels of support and resistance: Watch for the price to retrace to the key Fibonacci levels of 23.6%, 38.2%, 50%, 61.8%, and 100%. These levels can act as areas of support or resistance.
3. Combine with other technical indicators: Use Fibonacci retracement levels in combination with other technical analysis tools, such as moving averages or trend lines, to confirm entry and exit points.
4. Use as a stop-loss: Place a stop-loss order just below the key Fibonacci retracement level to limit losses if the market moves against your position.
5. Watch for confirmation: Wait for confirmation of a reversal before entering a trade. This could be a candlestick pattern or a break of a trend line.
It is important to note that Fibonacci retracement levels are not always perfect indicators of support and resistance, and should be used in conjunction with other technical analysis tools and fundamental analysis.
3. 5. TREND-BASED FIB EXTENSION TOOL :
It is a target tool
The trend-based Fibonacci extension tool is a technical analysis tool used to identify potential levels of resistance or support beyond the current price action. Unlike Fibonacci retracement levels, which are used to identify potential areas of support or resistance within an existing trend, Fibonacci extensions are used to identify potential levels of support or resistance in the direction of a trend.
The Fibonacci extension tool uses three points on a chart: a swing high, a swing low, and a retracement level. The tool then calculates potential price targets based on Fibonacci ratios of 1.618%, 2.618%, 4.236%, and 6.854%. These levels represent potential areas of support or resistance that may act as profit targets or areas to watch for potential reversals.
Here are some strategies for using the trend-based Fibonacci extension tool:
1. Identify the trend: Determine the overall direction of the market and draw the Fibonacci extension tool from the swing high to the swing low in an uptrend and from the swing low to the swing high in a downtrend.
2. Look for potential targets: Watch for the price to move beyond the swing high or low and towards the key Fibonacci extension levels. These levels can act as potential profit targets or areas to watch for potential reversals.
3. Combine with other technical indicators: Use Fibonacci extensions in combination with other technical analysis tools, such as moving averages or trend lines, to confirm entry and exit points.
4. Use as a profit target: Place a take-profit order at one of the Fibonacci extension levels to lock in profits if the market moves in your favor.
5. Watch for confirmation: Wait for confirmation of a reversal before entering a trade. This could be a candlestick pattern or a break of a trend line.
It is important to note that Fibonacci extensions are not always perfect indicators of support and resistance, and should be used in conjunction with other technical analysis tools and fundamental analysis. Additionally, it is important to manage risk by placing stop-loss orders and not relying solely on Fibonacci extensions for trading decisions.
4. 6. RECTANGLE BOX :
It is used for drawing supply and demand zone
5. 7. TEXT:
It is
used for writing purposes in the chart
6. 8. DATE RANGE
TOOL
This Tool allows users to place points vertically on two different prices. A shaded box will then appear between the chosen points showing the range of the prices. Text will also appear along the box displaying the total size of the price moving in terms of actual share price, percentage, and pips (ticks).
7. 9. PRICE RANGE
TOOL
This Tool allows users to place points vertically on two different prices.A shaded box will then appear between the chosen points showing the range of the prices. Text will also appear along the box displaying the total size of the price moving in terms of actual share price, percentage, and pips (ticks).
10. DATE AND PRICE RANGE TOOL
This Tool allows users to place points vertically on two different prices. A shaded box will then appear between the chosen points showing the range of the prices. Text will also appear along the box displaying the total size of the price moving in terms of actual share price, percentage, and pips (ticks).
Thank you for reading this page and know more about trading contact us
0 Comments