19. What is TradingView?
TradingView is a website that investors around the world use to perform technical analysis for a wide variety of trading instruments. Click here to go to the website.
My favourite way to invest in forex is to use three minute trades using five minute candles. I use Cash Trap to help me decide when and how to make trades.
However, Cash Trap has one great shortcoming. Each time a new candle is formed, all support and resistance lines I’ve drawn are erased. Along with other strategies, these lines are an essential indicator for proper trade analysis.
Finding forex candles on TradingView
To find forex candles for any currency pair, perform the following steps in the order given:
- Go to tradingview.com.
- Click on Markets > Currencies > Major.
- Click Minor if you need more.
- Click on the particular trading pair you want.
- Click on Full-featured Chart button to see the candles. (If you can’t see that button, make your page wider.)
Finding 5-minute candles
When making support and resistance lines, I like to make lines starting with the 4-hour candles. Then I go down to the one-hour, 15 minute and 5 minute in that order.
To find these 4 candle types on TradingView:
- Near the upper left-hand corner, to the right of the currency pair name, you will see a time link. In this image it is 4 hours. Click on it.
- Select whatever time you want.
Drawing support and resistance lines
To draw support and resistance lines:
- Go to your latest COMPLETED 4-hour candle.
- Using the Horizontal Ray tool, draw lines from the tops and bottoms of the wicks.
- Colour the top (resistance) line red. Colour the bottom line (support) line green.
- Do the same thing with the one-hour candles. In this case go back in time and try to connect 2 or 3 wick ends. Also, in this case I made the line 2 px wide. I made them wider as they got to shorter candles.
TradingView and Cash Trap
I’m using TradingView as an adjunct to help me use Cash Trap. In this image the Currency Strength Meter is telling me this should be a call. Over the medium term the price is trending upwards. I suspect this could become a good trade if I wait for the arrow to get into the lower Bollinger bands and then ask for a call. So, I will use TradingView to create the support and resistance lines for EURUSD.
We see here that in the past 4 hours it has been trending upwards. It even broke through the latest resistance line that was made just a few seconds before the wick went up so high.
So, I’ll go back to Cash Trap to see where things are going now. The Put arrow is pointing in the wrong direction. So, let’s look at the TradingView 5-minute chart now. The red arrow is going towards the wider support lines.
It seems to me that the EURUSD is trending upwards and will soon break resistance. So, at this point I would go back to Cash Trap and probably make a call trade as soon as the arrow changes to Call.