If you are new to the stock market and wondering how to use Tradingview for stock market trading, this post is for you. In this post, I will explain how you can best use Tradingview for trading and investing.
What is Tradingview
Tradingview is an advanced charting platform for stocks, indices, cryptocurrencies, and other financial instruments. The charting platform comes with multiple chart types and over 100 indicators.
Its popularity is evident because most Indian online brokers come with an inbuilt Tradingview charting tool. However, the Tradingview website is considered more reliable than the Tradingview charting tool of most brokers.
Using Tradingview, you can predict the price movement of any stock, market trends, and market conditions to increase the chance of winning a trade. The platform gives you everything you need for a perfect technical analysis, and it's up to your skills to make the most out of them.
The best part is that the platform offers a Free version, which should be fine for most users.
How to Get Started with Tradingview
You can get started with Tradingview for free, and to start, you need to visit the Tradingview website. Next, you need to sign up for a Tradingview account using your email or phone.
Besides, you need to create a password to protect your account against unauthorized access. Lastly, you need to authenticate your signup request by clicking on the Tradingview email link sent to your email inbox.
Tradingview has a clean interface and lightweight charts, making it better than other charting platforms. Tradingview comes in two themes: Light and Dark. You can choose between the two according to your preference. You have the Drawing Panel on the left and Watchlists and Alerts on the right.
If you are looking forward to investing in stocks, you can find a lot of help in-stock selection using Tradingview's Screeners feature. The feature has various screeners including Crypto Pairs screener, Crypto Coins screener, Forex Screener, and Stock Screener. To use the Tradingview stock screener feature, click on the Stock Screen option at the bottom.
It will display various stocks based on performance, valuation, profitability, and dividends. Besides, it has many filters, such as Index, Price, Change %, P/E, Div yield, Sector, and Analyst Rating.
Multiple Chart Types
A chart displays the price movement across different price levels. Tradingview allows you to visualize this data in multiple chart types such as Bars, Candles, Hollow Candles, Lines, Heikin Ashi, Renko, and Kagi. Line Chart, Candles, and Heikin Ashi are the three most popular chart types used by Indian traders and investors. However, you can choose any Tradingview chart type according to your convenience.
While the Tradingview Free version has a Single Layout, the paid plans allow you to use multiple layouts. This feature is useful for multiple time-frame analysis or viewing other stock or index charts simultaneously. You can choose from various vertical and horizontal layouts with slots for up to 16 charts.
Tradingview offers various advanced drawing tools for excellent technical analysis. Some essential drawing tools are Horizontal lines, Rectangles, Price Ranges, Fib Retracement tools, Trend lines, Short Positions, and Long Positions.
Besides, it has more advanced drawing tools such as Heads and Shoulders, Triangle Patterns, and Elliot Impulse Waves. Most importantly, all drawing tools are free in Tradingview, and you can learn to use as many drawing tools as you want.
Tradingview's paid plan allows you to create multiple watchlists, while the free plan allows you to create one. You can add your favorite stocks to the watchlist and track their price movement. Besides, for every stock added to a Tradingview watchlist, the platform offers excellent fundamental and financial data.
Some of these data are Volume, Average Volume, Market capitalization, Dividend yield, Quarterly Earnings, Income Statement, Performance, and Technicals with Buy and Sell signals. Further, it provides an Analyst rating with a one-year price target.
Tradingview lets you analyze the price movement using various time frames, and multiple time frame analysis is an integral part of technical analysis. For example, in day trading, a trader can use the 1D chart to read the candle stick pattern, 15m to find major support and resistance levels, 5m to watch the chart in real time, and 1m to plan entries.
Interestingly, Tradingview allows you to use all these time-frames even in its free plan.
Over 100 Indicators
While price-action is the most popular form of technical analysis, many traders use indicators since they think price-action is too complex. Some traders also use a combination of price-action and indicators to make wise decisions.
Indicators are derived from price and volume, which is why they really work. Some popular Tradingview indicators are MACD, EMA, RSI, ADX, Supertrend, Bollinger Bands, and Pivot Points. Interestingly, you can easily find any of these indicators on Tradingview.
Tradingview's free version limits users to just three indicators. However, three indicators should be more than enough for most traders and investors since too many indicators can create confusion. One must strive to master one technical indicator than using too many indicators. Tradingview has a library of technical indicators.
In addition, there are indicators published by the Community. Further, you can find multi-indicators in the Community section – for example, a three-in-one or a five-in-one indicator. The platform also allows you to create a custom indicator with your trading idea if you know pinescripting.
Advanced Alerts and Notifications
You can set alerts and notifications for your price on Tradingview. It can be handy for those who can't constantly monitor the chart. You can choose from various conditions to set a price alert. These conditions are Crossing, Crossing Up, Crossing Down, Greater Than, and Less Than. For example, if you choose Crossing Up and set a price level, Tradingview will send a notification when the price crosses the level upside down.
Besides, you can also select between Only Once or Everytime. The options to set an alert are self-explanatory. Apart from setting an alert, you must also specify the notification type. You can choose between notification types such as Notify in-app, Show pop-up, Send email, and Send email-to-SMS.
Compare is another cool feature that you can use to compare two or more charts. For example, you can have HDFC Bank and Bank Nifty Charts side by side to check the impact of one upon the other. It's also used to filter out the false signals in the market. Now, if you are planning to enter a position in HDFC Bank, you must also watch the Bank Nifty Index Chart closely for confirmation.
Tradingview's Trading Panel lets you connect your broker to your Tradingview account; that way, you can buy and sell right from your Tradingview account. Besides, you can manage your positions in Tradingview's trading panel section without leaving your chart, which is an excellent advantage.
For now, Tradingview offers integration with Dhan and Fyers trading platforms. If you have one such trading platform, you can capitalize on this feature to take your trading to the next level.
How to Use Tradingview for Backtesting & Paper Trading
Tradingview is an excellent platform and equally suitable for all levels of traders and investors. If you are starting your trading and investing journey, you can backtest and practice without using any real money, using historical and real-time data.
Even when the market is closed, you can backtest your strategy on historical data. For example, if you want to test a simple 50-day EMA strategy, wherein you enter a position every time the price crosses the EMA line up or down.
You can add the EMA indicator from the Indicator section and change the settings to 50 from 9 on a 5m time frame. You can also define your target and stop loss using the position tools. Next, you can observe how many times the strategy worked in the past.
You need to observe carefully if the strategy gave more winning trades than losing trades. However, you must also have a good risk management plan along with a trading strategy.
Further, you can paper trade in real-time when the market is open to check if your strategy is actually working. The best part is that you don't need money to paper trade. All you need is a strategy like 50 EMA with position tools (Long and Short position tools) to define your target and stop loss.
Even though you can sign up for free with Tradingview and create an account for your technical analysis, Tradingview offers paid plans for those who need advanced features. Tradingview has two pricing categories, Non-professionals, and Professionals, with three plans under each category.
Tradingview Non-professional plans
- Essential: ₹995 per month, 2 charts per tab, and 5 indicators
- Plus: ₹1,995 per month, 4 charts per tab, and 10 indicators
- Premium: ₹3,995 per month, 8 charts per tab, and 25 indicators
Tradingview Professional plans
- Expert: ₹16,333 per month, 10 charts per tab, and 30 indicators
- Elite: ₹28,333 per month, 12 charts per tab, and 35 indicators
- Ultimate: ₹40,833 per month, 16 charts per tab, and 50 indicators per chart
I have walked you through the various aspects of Tradingview, giving you good clarity on how to use Tradingview for stock market trading. As you have seen in this post, Tradingview is an extremely powerful tool for technical analysis, and the free version is more than enough for studying the chart patterns.
The platform is equally good for day traders, and investors. You can use Tradingview's drawing tools, indicators, and multiple time frames to find winning trades. Besides, you can always upgrade to Tradingview pro plans if you ever need extra or advanced features.