Learning how to read TradingView Charts like a pro is not only about knowing how to navigate the platform. The process requires knowledge of what tools and indicators may assist you in making informed trading decisions. A strategic use of TradingView Charts can give you market advantages.
To master TradingView Charts, you first need to understand the different chart types. Several chart types show price movements in their distinct ways with Line charts, Bar charts and Candlestick charts. For example, candlestick charts are very good at telling when the price is going up or down for short periods of time. The candle body is made of individual opening and closing prices of the period, while the wicks represent the highest and lowest prices over the specific period. Once you have learned to relate the formation of candlesticks to familiar patterns like doji, engulfing, or hammer, which tend to signal a potential reversal or continuation in the market, you can develop your own patterns.
After mastering chart types, it’s a good idea to incorporate technical indicators. TradingView charts offers built-in analysis tools that let you study price movements, trading speed and price swings. Most traders rely on moving averages to detect if prices are moving up or down. By adding simple moving average (SMA) or exponential moving average (EMA) to your chart you can quickly tell if the market moves up or down. The moving averages filter out price noise so we can better understand market direction.
RSI functions strongly with TradingView Charts when used in combination with moving averages. RSI tracks speed changes in asset price movements to show when a security reaches extreme buying or selling levels. Around an RSI of 70, it indicates that the asset is overbought and may experience a correction; and below 30, it indicates that the asset is oversold and could rebound. With RSI, you can spot entry and exit points when you should buy or sell based on the conditions of the market.
Another important tool for reading TradingView Charts is trendlines. There is something about drawing trendlines that gives you a visual representation of the general direction of the market, whether in uptrending or downtrending markets. Finally, trendlines also help establish important support and resistance levels that indicate where the price is likely to reverse or break through. A trendline break may signify the start of a new trend or a reversal.
Reading TradingView Charts also involves using chart patterns frequently. Triangles, head and shoulders, and double tops or bottoms are pattern formations that provide significant signals regarding forthcoming price movements. These patterns are often considered reliable indicators of trend reversals or continuations. By recognizing these formations, you can predict more accurately where the market is heading.
Set alerts directly from your TradingView Charts dashboard. You can receive notifications when price hits particular levels or when trendlines break at set indicator values and price points through TradingView Chart alerts. You will receive notifications that enable you to act immediately when alerts go off.
You will become a TradingView Charts professional as you practice these methods. As you practice, you will understand how the market moves better and your trading decisions will become more confident.