How Cryptocurrency Charting Works in TradingView
TradingView is one of the most popular platforms for tracking cryptocurrency price movements. Although there are a number of alternatives available, TradingView remains the preferred choice among many cryptocurrency traders. You can open an account for free and access valuable charting features straight out of the box.
How can you take advantage of TradingView’s powerful features? How can you setup a powerful cryptocurrency chart with indicators in TradingView? Today, we’re explaining everything you need to know about how cryptocurrency charting works in TradingView.
In TradingView, every chart displays a horizontal and vertical access. The horizonal axis tracks the timeframe and the vertical axis tracks the price – similar to most charts you see online.
Candlestick Price Action
The chart has several display options. You can choose to display the chart in a number of different ways, and candlestick is one option. This is the default option on many cryptocurrency exchanges, so it may be the option that makes you most comfortable. Candlesticks are popular with the trading community because it lets you see what buyers and sellers are doing with each trading session. A green candle indicates an increase in price from the close of the previous candle, while a red candle indicates the opposite. You can customize the length of your candle however you like.
The candles on a candlestick display chart provide three key pieces of information, including:
- Opening Price
- Closing Price
- High and Low Prices Within the Selected Timeframe
Bar graphs, line graphs, and area display graphs are also available within TradingView. These offer a more simplified trading view than candlestick graphs, but they also display less information.
Click on the symbol box within TradingView to reach the data feed. Type in your desired symbol, select the cryptocurrency category, then change the data feed to an exchange of your choice.
If you type in BTCUSD, for example, and click the cryptocurrency tab, then you’ll see a number of different pairs available to be tracked within your data feed. These feeds come from leading bitcoin exchanges. You’ll be able to track data from Bitfinex, for example, Coinbase, Bitstamp, CEX.io, and other major exchanges.
Your best option is to choose a high-volume cryptocurrency exchange. Remember: there’s no centralized price tracker for bitcoin. You need to use a specific website – like a major exchange. However, prices will differ slightly between exchanges.
Understanding Symbols In TradingView
Cryptocurrency Versus Fiat Currency
Every chart needs two competing assets to display price action. You need to display the price of one asset relative to the price of the other asset. One BTC, for example, can be worth $8,000 USD or $6,000 EUR.
The above example uses bitcoin (BTC) versus the US Dollar. That’s why we typed in BTCUSD. When you’re viewing the BTCUSD pair, you’re looking at the price someone would pay in the second asset for every 1 unit of the first asset. You might see a price of $7,000 USD, for example per every 1 BTC.
You can compare cryptocurrencies with fiat currencies using this same system. This works for all major pairs – including everything from ETHEUR to a more obscure pair like BTCCAD.
Cryptocurrency Versus Cryptocurrency
You can also compare cryptocurrency prices versus other cryptocurrency prices. Some people find it helpful, for example, to check the price of an altcoin in relation to the price of bitcoin. How much is someone willing to pay for a single altcoin in bitcoin?
ETHBTC is one popular pair to watch. It’s the most heavily-traded crypto/crypto pair on the market. You can track this pair across a number of different exchanges.
Analysis Tools Within TradingView
TradingView allows you to add technical indicators to your display. After setting up your crypto-to-crypto or crypto-to-fiat pair, you might add indicators like RSI or MACD to your display.
RSI, or Relative Strength Index, and MACD, or Moving Average Convergence Divergence, can be added to your screen simply by right-clicking anywhere on the chart. Select “Insert Indicator”, then search for RSI, MACD, or whatever other indicator you wish to add. You’ll see plenty of other indicators available from within this menu. Consider trying out a few different indicators. Do your own research and see what works for you.
Some traders make the mistake of crowding their display with too many indicators. Indicators work in vastly different ways. Some indicators will predict one movement, while other indicators will predict another movement. If you’re crowding your workspace with too many indicators, then market movements will get lost in the noise.
TradingView also lets you draw on your chart using a number of different tools. You can draw trend and resistance lines, for example, to see the general trajectory of prices over time.
New traders might not see much value in drawing on their screen. However, as you become more experienced with crypto trading and TradingView, you might find it helpful to perform your own analysis.
Analytics And Social Trading Features
TradingView has a number of other features you may wish to implement, including everything from symbol watchlists to social trading features:
- Chart Layouts: You can save specific chart layouts, drawings, and indicators for future sessions.
- Price Alerts: Get a notification when the price of an asset breaks a certain barrier.
- Symbol Watchlist: Add your favorite pairs to your symbol watchlist to track daily market moves.
- Social Trading: Chat with other cryptocurrency traders to track market sentiment.
The bottom of TradingView features a blue button called “Publish Idea”. That button lets you publish your chart layout online and receive criticism from the community. You might publish your idea for price predictions online, for example, and share it with the community to hear their feedback.
TradingView Crypto App Conclusion
TradingView is powerful software that’s popular within the cryptocurrency community. We’ve talked about the most basic TradingView features listed above – but the software has plenty more to offer. Whether you’re trading cryptocurrencies for the first time or taking your trading to the next level, TradingView is one of several major trading platforms available for free today.