For the new trader, trading may seem too complex to start with, but tools like TradingView make it easy to learn and analyze markets. TradingView is a powerful charting platform for beginners, offering many features for studying price movements, setting up trading strategies, and connecting with other traders.
This guide will take you through the charts that new traders can get the most out of on TradingView, from a basic account setup to customized layouts and understanding key indicators.
How to Use TradingView Charts?
If you’re new to trading and feeling a bit overwhelmed by all the tools and charts, don’t worry—you’re not alone. Let us look into how you can fully utilize TradingView to analyze the market in a confident way and develop your trading strategies. Here’s how:
1. Get Started with a Free Account
Setting up a TradingView account is simple. All it requires is a free account which takes about a couple of minutes to complete.
Once you are signed in, you can look for various charts and other features free of charge. Begin by learning how the website is laid out. Look at the main page, find different assets using the search tool, and open the chart.
This basic navigation will help you quickly feel comfortable and ready to explore more advanced options as you progress.
2. Choose and Customize Chart Layouts
Customizing your TradingView chart allows you to view different market movements in accordance with the way you want to trade.
To begin with, select the type of chart you prefer. Newbies tend to choose a candlestick chart because it enables them to see finer details about price movements. Next, try changing the time frames to daily or weekly to get a picture of short-term or long-term perspectives.
Once you find a setup that feels right, save your layout so you can easily access it for future analysis.
3. Use Indicators to Analyze Trends
Using indicators on TradingView can help new traders understand market trends and make informed decisions.
For example, if you’re looking at the Sensex chart, adding a Moving Average indicator shows you the average price over a period, helping you spot trends easily. Other popular indicators like RSI (Relative Strength Index) show whether stocks are overbought or oversold.
So, if Sensex has a high RSI, it might mean prices are too high and could drop soon, signaling caution.
4. Draw and Highlight Important Levels
Marking key price levels on your TradingView chart helps you spot where prices might bounce or reverse, known as support and resistance areas. For example, if a stock often drops near Rs. 100 but rises back up, Rs. 100 is a support level.
Similarly, if it keeps hitting Rs. 120 but doesn’t go higher, that’s a resistance level.
Drawing these lines helps you understand when to buy or sell by watching how prices behave around these levels.
5. Set Up Alerts for Key Events
Setting up alerts on TradingView helps you stay updated without constantly watching the charts.
You can create price alerts for when a stock or asset reaches a specific level, so you’ll know when it’s time to consider a trade. Indicator alerts notify you when an indicator, like RSI or Moving Average, reaches a certain level, signaling a potential trading opportunity.
These alerts are sent directly to you, making it easier to act quickly without missing out on important market moves.
6. Keep Charts Simple
Keeping your charts simple is key, especially as a new trader. When you add too many indicators, it can make the chart clearer and easier to read.
Instead, focus on using just a few essential indicators, like Moving Averages or RSI, to help you get a clear view of trends and patterns. This way, you’ll understand the data better without feeling overwhelmed.
Remember, simplicity allows you to make clearer, more confident decisions as you grow your trading skills.
Conclusion
TradingView is a great tool for beginners to learn and practice trading. With its easy-to-use charts, indicators, and helpful community, you can start building your skills and confidence in trading. Keep exploring, stay consistent, and remember that learning takes time. TradingView makes it simpler to understand the markets and work towards successful trading.