One platform that has become incredibly popular among cryptocurrency traders in recent years is TradingView, which many consider the gold standard for comprehensive tools. However, knowing where to start can be confusing, and getting the most out of this platform requires skill and dedication, which is why many are dissuaded. In this article, we’ll explain why TradingView can be an incredibly powerful asset and how you can use it to drive strong returns.
What Is TradingView?
In case you’re unaware, TradingView is a well-rounded trading platform containing everything you could want as a cryptocurrency trader — from analytical tools to strategy planning features. It has an incredibly easy-to-use interface and boasts a range of charting tools, making it the go-to platform for novice and experienced traders.
While TradingView can be a valuable asset, allowing you to make marginal improvements to your trading strategy, you should remember that it’s not a silver bullet; you may still require other tools to generate your ideal returns.
The world of cryptocurrency is often regarded as fast-paced and incredibly volatile. While these traits are often exaggerated by those who are unfamiliar, there is some truth to it. It’s because of this that many traders work hard to create a robust strategy that they can use to drive consistent success, irrespective of market conditions. As cryptocurrency assets become more popular and widely utilised, traders seek more ways to refine their trading techniques and generate more substantial returns. In doing this, many turn to online tools and platforms that can provide all-in-one solutions.
Below, we’ll look at ways to use TradingView to improve your cryptocurrency trading strategy and why you should consider using this powerful platform.
Technical Analysis and Charting
Technical analysis often forms the foundation of many cryptocurrency trading strategies, making it essential for anybody looking to get started. When it comes to technical analysis, trading often focuses on historical price analysis and pattern identification, which gives them a better chance of predicting future price movements. TradingView allows traders to do this easily, largely thanks to the wide range of charting tools and technical indications, allowing for in-depth analysis without much hassle.
Traders often use features like trendlines, support and resistance levels, moving averages, and oscillators to identify entry and exit points, allowing for more reliable analysis backed by real data. This can be useful for any trader — whether you’re a day trader looking to flip assets at short notice or a long-term trader looking for trends over several months. No matter what type of trader you are, TradingView can provide you with the tools needed for technical analysis.
Trend-Following
As its name suggests, trend-following consists of identifying established trends within the market and capitalising on them by acting at the right time. TradingView’s charting tools make it easier to identify trends and visualise them as a chart or data export. Even if this isn’t your preferred trading strategy, there is tremendous merit in knowing how the market typically behaves, as this will impact all traders, regardless of their strategy.
Trend-following traders can use indicators such as the Moving Average Convergence Divergence (MACD) or the Relative Strength Index (RSI) to better understand which way a trend is moving and how strong it is. By doing this, traders can have greater confidence that the same will happen again, allowing for more reliable forecasting and strategy planning. TradingView’s built-in screener functionality enables traders to filter for assets that show specific trend characteristics, making identifying potential trading opportunities much quicker.
Risk Management and Trade Execution
While technical analysis and following trends can be incredibly useful for traders looking to gain an edge in cryptocurrency trading, having a robust risk management plan is crucial for long-term success. TradingView provides the necessary tools for traders to implement risk management techniques and execute trades with greater precision and peace of mind.
The platform boasts features like position sizing calculators, risk-reward ratio analysis, and trade journaling capabilities so traders can easily assess a potential trade’s profitability. Traders can, therefore, manage the risk with greater understanding. Additionally, TradingView integrates with several cryptocurrency platforms to allow traders to execute trades directly, streamlining the entire process.
Getting Started With TradingView
TradingView has the potential to revolutionise your cryptocurrency trading strategy by providing access to powerful charting tools, technical indicators, and risk management capabilities. Regardless of your trading strategy or level of risk that you’re comfortable with, the platform provides considerable flexibility to support your trading approach. By using TradingView alongside traditional research and trade execution techniques, traders can unlock their full trading potential and better succeed in the fast-moving world of cryptocurrency trading.
