Friday, 01 February 2019 09:33

How to Use AltCoinTrader's New Trading View Charts

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AltCoinTrader is always pushing the envelope when it comes to bringing cryptocurrency traders the best tools and tech available. 

With the integration of TradingView charts on the trading platform, their tradition of making the exchange even better continues. TradingView charts are a long-admired trading industry standard, used by leading exchanges the world over.

Knowing your way around a TradingView chart can boost your prowess as a trader and give you deeper insight into the world of technical analysis-based trading. Cryptocurrency traders are especially fond of TradingView's charting platform -- so without further ado, let's dive into the tips, tricks, and features that make TradingView not only a great suite of tools but an important asset unto itself.

Getting Started

The first thing you'll notice if you've never seen a TradingView chart before is the sheer amount of *stuff* on the screen. While we can completely understand how overwhelming all the icons, lines, and numbers may seem, just take a step back, read this guide all the way through, and remember your training.

trading view chart altcointrader sa

  1. Top toolbar. Across the top toolbar, you'll find what is arguably the chart's most important set of options. Timeframes, candles, indicators, chart templates, and customizable alerts are all accessible here. The top timeframes to use for day traders are the 5min, 15min timeframes while swing traders rarely go below 1hr and mostly use 4hr to 1Day for their analysis.
  2. Left toolbar. Once you're familiar enough with the basics of technical analysis, you'll want to start drawing on your charts to visualize things like support and resistance zones. All of your tools for drawing straight on the chart can be found here on the left. Some the most useful ones are Fib Retracement, Long Short Positions & Forecast as well as the drawing tools.
  3. Bottom toolbar. This gives you the Time Zone Scale. Additionally, it is also for organization functions and visualizations of the indicators you set from the top toolbar. You can take notes, test strategies, and switch over to long term time frames here on the TradingView platform.
  4. Right toolbar. On the right, you'll find the price range indicator. On the TradingView platform itself you are also able to record and publish ideas, check alerts, read news, and engage in public discussions.
  5. Main chart. The main chart is the area within the four toolbars. This is where you'll find a digital asset's price action represented by candles over a given timeframe. The bottom of the main chart area is comprised of volume measurement (how much money is buying/selling an asset), while the right side gives you the numerical values (how much the asset is worth at each given candle position/timeframe, or the values for the indicator you've applied. Across the top, you'll the name of the asset you're trading along with the currency pair it's trading against and its daily values (high, low, and current price).

That will get you started with ease using a TradingView chart for the first time. Now, about those more technical features...

Customize Your TradingView Chart

There are some steps you can take to clean up the chart and customize it to your needs. See below some of top tips to make the look and feel your own:

  • Click on the Gear Icon at the top
  • Select the Background Tab and the Background Color you prefer. Many traders trade at night or look at the screen for hours on end. A dark background might be a bit easier on the eyes
  • The Vertical & Horizontal guides can be helpful but hiding them both makes the screen so much cleaner and keeps the focus on the price action
  • Untick some of the options on the right that clutter the screen but keep the ones useful to your style of trading
  • Select the Style Tab and select your preferred candlestick options. Candles with Wicks included is recommended

customize trading view crypto charts

Now you have a nice clean chart that is easy on the eyes. But it does come to down what you prefer in the end.

Indicators

Why use indicators?

Everyone has a different reason, but underlying all of those different reasons is one big, glaring truth: Traders use indicators to get an idea about where the price of a given cryptocurrency asset or market is headed.

Indicators have been developed, backtested, and accepted over time by traders for their objective reliability in spotting trends occurring within an asset's price action. However, some are more popular than others and make for straightforward use.

Support and Resistance

support and resistance lines altcointrader trading view

Charting support and resistance levels will give you an opportunity to test out the drawing function on your chart. Support and resistance are two essential technical analysis indicators -- and if you choose to only learn two concepts from TA, it should be these.

To find support zones, choose a time frame that matters to you (longer time frames are generally more reliable), then select the line drawing tool from the left-hand toolbar. Next, draw a line that charts across the bottoms of candles where the price went no further.

This line doesn't need to be straight across, and it can also chop through other anomalous candles if need be. The point is to find a trend across the lowest price points of a digital asset. Once a trend is found, a view towards a support zone can be established. This zone, once found, *should* signify the area wherein the asset's price has the most support.

Resistance works in much the same way, except charting resistance is done across the tops of candles to visualize the area where the asset's price is having trouble breaking through.

Bollinger Bands

Bollinger Bands Altcointrader tradingview bitcoin 1

Legendary trader John Bollinger invented Bollinger Bands as a way to wrap price info between moving averages. The result is a visualization representing just how overbought or oversold a cryptocurrency asset is.

If an asset displays as oversold, then traders may infer that the asset is undervalued and makes for a good buy should the price rebound.

Overbought assets, on the other hand, indicate that buyer exuberance may have reached its ceiling and that traders should start heading for the exit.

Moving Averages

bitcoin moving averages

Charts become messy, complicated, and full of noise. To reduce the clutter and get to a clearer view of what's going on in a chart, traders often resort to using moving average indicators. If you're watching day to day price action, it's difficult to get a bird's eye view of an asset's performance on wider time frames. That's where moving averages come into play -- they'll show, for instance, bitcoin's price average for a time frame selected by you.

After comparing moving averages across different time frames, traders can make estimates about emerging trends, such as whether an asset like Ethereum is entering an uptrend.

The most popular Moving Averages for Swing Traders are the 50 Day MA and the 200 MA. 

Volume

bitcoin trading volume south africa

There is an old trader adage that "volume precedes price." What this means is that without a convincing amount of volume developing or in place, a trend reversal is unlikely to take place.

In the third quarter of 2018, bitcoin's price was stuck ranging in the $6,000 zone for months on end. Moves to the upside and downside would both pop up, but they were always accompanied by weak volume. Weak volume here means that, in contrast to big volume days bitcoin has had in the past, the volume was too little to sustain a major rally or drop.

And so, bitcoin remained stuck in its range without the addition of convincing volume until, finally, BTC started dropping and traders cranked the volume up - way up. The result? BTC lost half of its value within a week.

Knowing this -- the volume measurement at the bottom of the main chart will, invariably, become your best friend.

Relative Strength Index (RSI)

The RSI is one of the most widely used indicators in the crypto trading space as well as more traditional markets. It indicates Overbought and Oversold conditions which in turn can guide you on when to sell and when to buy. It can be misleading at times, especially after a big sell off or pump in the price so care must be taken and it has to be used together with some of the other indicators mentioned above. 

rsi bitcoin altcoin oversold overbought

Alerts

TradingView has tons of nifty features, but perhaps the one that'll save your neck time and time again is the alerts feature. With alerts, you can set alarms that are triggered by changes in the values you care about most.

We're not just talking about simple price alerts ("alert me if BTC crosses the $4000 mark") -- we're talking about alerts for finely-tuned specifications like "alert me if the 10-day EMA crosses over the 20-day for both Ethereum and bitcoin."

There's no end to the number of alerts you can set up for yourself - the sky is truly the limit here. So, instead of painstakingly watching charts day in, day out, figure out what matters most to you and set some alerts to stay on top of the market.

In Conclution

We hope you've found this guide to using TradingView on AltCoinTrader useful and that it assist you on your way to mastering the skill of cryptocurrency trading. Traders need all the tools possible to navigate the volatile markets like Bitcoin and the other Altcoins and having a tool like this will assist greatly in this. 

Click here to register at AltCoinTrader and start using these invaluable trading tools today.

Click here to register your account at TradingView. There are free options available. TradingView now accepts Bitcoin when subscriping to their annual plan.

 

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