TradingView: What Is It and How to Use It to Trade with Phemex
Key Questions Answered
With an ever-increasing amount of trading theories, tools, and data available, trading is becoming increasingly accessible, but also increasingly complex. Platforms such as TradingView aim to facilitate trading analysis by offering trading tools, including specific TradingView strategies, and learning to create an environment for knowledgeable trading.
What Is TradingView?
TradingView is a browser-based platform offering investors and traders all the tools they need to analyze the market and make informed choices on their investments. Their motto, “look first, then leap,” is a great indicator of what they stand for, and with 30 million users it seems that it is hitting home for a lot of people. TradingView argues that too many people lose money on investments because they lack the tools and knowledge to properly analyze their investment choices before making the leap. Thus, to help investors and traders earn more, manage their risk properly, and not lose all their money, TradingView has put everything they need in one place.
Further backing-up their claim to truly want to help traders is their offering of a free membership, with no obligation to trade at all. Moreover, alongside the free tools provided, free TradingView real-time data is available from regions across the globe. The free membership does have its limitations, however, such as only offering three indicators per chart, meaning it only allows for basic analysis. However, the free features are perfect for someone who is just starting out and needs to learn the ropes before jumping into the deep end of trading analysis. To access more advanced features, a user must upgrade to a full membership.
What Does TradingView Offer?
TradingView offers many features, all designed to offer the user the best analysis possible. Some of its main features include:
TradingView Multiple Charts
The cornerstone of TradingView and any market analysis, these multiple charts work using data in real-time. Offering multiple charts on one screen, the platform can facilitate analysis without the need to switch between windows. These charts offer data in easy-to read formats, including the TradingView volume profile feature that shows the buy/sell trading volume of the market or specified assets. Moreover, as a browser-based platform, there is no need for installations or updates, meaning users can directly view and interact with the charts on a secure cloud.
Technical analysis and algorithms
With over 100 indicators and over 50 intelligent drawing tools, TradingView has been able to cover most popular trading concepts, including Elliot waves, Fibonacci and Gann retracements, and custom indicator templates. Users can establish trend lines, highlight the elements that they need to, and even make handwritten notes, meaning that their analysis is fully their own. Not to leave novices lost, however, each of these features has clear instructions and even video tutorials and histories that are easily accessible.
Ensuring that traders don’t miss the trades that they have spent so long analyzing, the TradingView platform offers 12 different alerts that are applicable on price, drawings, indicators, or strategies. These have different conditions depending on the membership chosen, however.
This filtering tool allows users to narrow down the assets that they wish to analyze, from newest additions, best-performing, worst-performing, and others. The platform has multiple options to trade, including cryptocurrencies, fiat currencies, stocks, indices, futures, and bonds, thereby giving expansive options to traders and giving themselves as a company the widest options possible.
It makes sense that any app centered around analysis should have strong social functionality. TradingView states that theirs is one of the largest and most active in the world. Being a global platform with millions of users, this means that traders will find information on how to make the most of trades, where certain assets might be going, and what new trading strategies are appearing.
This aspect of TradingView is more personal to each user, allowing them to watch different assets that they might be interested in trading. Their lists can also be imported from their own devices to have them all in one place.
Is TradingView real time?
TradingView data is real-time data providing access to all major stock exchanges, global currency pairs, worldwide indexes, and other trading options. This is all accessible on the web platform directly, or in one click from the desktop and mobile apps, so traders can access the information at any time and from any place. This is ideal for Phemex customers, as all Phemex’s trading pairs are viewable on the platform. Phemex users can therefore take advantage of all the analysis tools and data on TradingView to create their strategy, and then conduct their trades on Phemex.
Can you trade on TradingView?
The answer is slightly ambiguous. Despite not allowing trading directly, the platform is connected to many brokers and trading platforms, such as Phemex, where the trades can be carried out. Additionally, TradingView provides a simulation trading set-up, where traders can practice with fake money to gain knowledge and confidence.
How to Use TradingView?
Using TradingView is something that requires a little practice, not because it is difficult, but simply because there are many features that need to be understood. To start, however, a trader simply needs to make an account and then go to “Charts.” Here, they can type in the trading pair that they would like to analyze, and the real-time chart will open, as seen below.
- Above the chart are features that can be used to add or amend information: The chart is displayed in candle sticks, but this can be modified to the user’s preference by clicking the candles icon at the top. Also on the top are options to apply strategies (each of which are explained by clicking the question mark icon on the side), add indicators, alerts, other comparable assets, and other features.
- To the left of the chart are the features that can be used to make your analysis: These features include trend lines, fib retracements, price ranges, icons, text, and others. Each of these are worth playing around with and researching to ensure that you fully understand how to make the most of these tools for your analysis.
- To the right of the chart, a trader can find the watchlist as well as social and organization features: These include private and public chats, calendars, alerts, news, hotlists, ideas, and notifications, to name a few. The watchlist and its details can be customized to show those assets that interest you.
- Below the chart are the other features: These include Pine Script, TradingView’s own programming language, which can be used by traders to customize their indicators and run them on the server. Additionally, this is where a trader can reach a broker to make a trade. This is done through a combination of the broker tab and the chart itself by opening and closing a trade.
However, despite all of the available information on TradingView, to understand how to use the chart and how to interact with it for the best analysis, it is worth doing some research first:
- Understanding what the analysis tools, such as the Fibonacci retracement levels and Elliot Wave Indicator, are and how they work is of primary importance. Articles on how to use these and many more can be found on Phemex Academy.
- Use the resources available on TradingView, including the social community and the help features that explain what many tools and strategies are, as well as providing video guides. Moreover, there are tools that can be used to practice, such as the simulation trading tool, and TradingView backtesting to see how trades would have gone in the past and present.
- Utilizing external resources, such as watching explanatory step-by-step videos, such as that published by YouTuber Disciplined Trader, can also be helpful.
The primary consideration, however, is not to start trading until you can do your own analysis — to look, then leap. Something which through TradingView’s tools and explanations combined with Phemex’s trading academy and trading platform is completely within reach.
Backtesting is a key part of any traders path to creating profitable trading strategies. It provides the opportunity to check whether a certain strategy worked in the past, and to see how effective it was. It is important to note that just a small change can alter the profitability of a strategy. To help with this, traders can use TradingView to backtest just a small section of that strategy, before backtesting the whole thing. In this way, a trader can locate exactly what part of their strategy needs amending to obtain maximum chances of profitability.
How to Backtest on TradingView?
On TradingView, a trader can backtest in the following way:
- Gather your data from the vast array of charts available on TradingView. Consider the amount of time that you will use your trading strategy: for shorter time frames analyze weeks of data, for higher time frames, look at years.
- Establish your parameters and manage risk. These include entry/exit positions, as well as establishing the amount you are willing to risk, and if you will risk the same percentage per trade or not.
- Use the TradingView rewind tool to go back in time and remove the predictive nature of knowing where the chart will be headed.
- Analyze the price charts for entry and exit signals. The time needed for this will vary depending on the length of your trading strategy.
- Finally, tally up the trade results to establish the profitability of your trading strategy.
The main aim of a backtest is to test every trading possibility that one may encounter when live trading. Of course, testing that many possible outcomes is exceedingly time-consuming and nearly impossible, but with TradingView a trader can test enough to have a good chance of success. Be sure to include enough data, enough parameters, ask enough risk analysis questions, and establish as many “If X happens then I will do Y” type scenarios as possible, and you’ll be on your way to a great trading strategy.
How to trade on Phemex using TradingView
In September 2020, Phemex integrated with TradingView to allow users to access the best tools and data to analyze the trading pairs available on its platform. In this way, users of the Phemex platform can make the best decisions for their trades and carry out those trades with the utmost of ease.
This integration also helps crypto traders analyze markets fully at any time. While traditional markets have set operating hours, crypto markets are open 24/7. TradingView after-hours trading allows Phemex users to analyze not only their crypto, but also other assets they may have invested in or wish to trade, regardless of the time.
By using these two platforms, a trader can first learn how to analyze the market and their trading pairs on TradingView — thereby “first looking.” They can then set an alert to tell them when a certain price is hit with that trading pair. While waiting for this, they can go on to analyze another trading pair by using the trading lines and established trading strategies directly accessible on the platform. Once they are happy with the cryptocurrencies they want to buy, they can “leap” by buying them quickly, efficiently, and securely through the Phemex platform, and finally, store them in their Phemex Wallet.