Want to Know What is Up With Bitcoin’s Price? Check out TradingView.com – An Overview of What TradingView.com is and How it Works
TradingView.com is a website focused on Technical Analysis that lets users create, share, and view “trading ideas” (marked up charts that show price predictions along with explanations).
The result is that users can get detailed analyses and price predictions pertaining to a range of cryptocurrencies and the cryptocurrency market in general (Forex and other types of tradable assets are discussed too, but the site is largely focused on crypto due to its popularity and so is our site, so we’ll focus on that).
NOTE: TradingView.com is an important crypto website, but it isn’t an exchange. Despite this we’ve added it to the exchange section due to the fact that it is an important tool in any crypto investor or trader’s tool kit.
Why Use TradingView.Com?
TradingView is insanely useful in terms of understanding the current market and getting a sense of what might come next.
Many of the analysts who post on there share quality posts, and quality posts tend to get upvoted. Thus, you will generally see useful quality analyses from at least decent technical analysts float to the top.
Further, for anything that one poster lacks, other posters and commenters make up for by offering counterpoints. A daily reading of TradingView serves a few purposes:
- It keeps you clued in as to how different people are analyzing different cryptocurrency trends (helping you to get an idea of trends, support levels, and potential buy/sell windows). In general traders who understand the trends preform better, you may not have the skills to do an analysis yourself, but you can at least read posts from those that do!
- It teaches you about Technical Analysis. It can be hard to know that it is helpful to learn about things like Elliot Waves, RSI, and support/resistance levels if you have never heard the terms. Terms like this get used often and to great effect on TradingView.com, and thus reading the site can offer exposure to new and helpful concepts.
- It can clue you in to what coins have attractive (or unattractive) patterns forming on their charts. It is often easier to find potential short term / medium term buys by looking at sources like Steemit and TradingView than it is to scour through CoinMarketCap.
TIP: If you want to try your hand at marking up charts, TradingView.com is a great tool in that sense too. If you have something shareable, then you can share it too!
TIP: If you only invested in crypto when TradingView’s buy/sell rating was buy, and only sold when it was sell, you would mostly avoid the worst of what the crypto market had to offer and be onboard for the best (missing some real opportunities and avoiding real risks in between). However, I’ve seen pries fly up when the consensus was “sell,” and I’ve seen prices drop hard when the consensus was “buy.” The consensus of analysts is no more certain than the tells of the indicators they use. No one can see the future, analysts and indicators speak only to probabilities and possible worlds based on historic price and volume trends.
How TradingView.com Works
TradingView has a few different layers, all of which can be found in the navigation at the top of the page.
The simplest and most user-friendly section is “Ideas.” Ideas is just a list of analyses that got viewed and upvoted. The ones that float to the top are generally good. If you find it helpful, hit the like button or comment on it. Make sure to pay attention to a range of posters, even the best analysts are wrong a portion of the time. In general you’ll want to entertain both a positive and negative scenario. Many analysts will frame their predictions as “this will happen,” however, we are dealing with probabilities and not certainties here…. and thus no one can really know for sure.
Another simple section is “Markets.” Markets just gives you a quick visual overview of different markets. This can help you see how and if the crypto market is correlating with other markets. Or if you trade other assets, how that market is doing at a glance.
A headier but useful section is “Scripts.” Essentially TradingView doesn’t just allow you to markup charts, it allows you to create scripts and use user-created scripts. Scripts are indicators and strategies coded in the Pine programming language that can show on trading view charts (so if you want to show RSI on your chart, you don’t have to draw it, you can plug the RSI script in). If you want to keep it simple, you can just look at charts that with scripts that other people share (just like the Ideas section) or you can insert the ready-made scripts into your charts (this is the most reasonable move honestly; so many scripts have been made, and you can add in indicators in a dropdown on charts to add in a pre-built script with a click of a button, only those who know a bit of code and a lot of TA would be making custom scripts).
Lastly, the core of the site is “Charts.” This is where you can create charts to share and insert scripts. You can click on that link and go through their helpful TradingView Chart Wizard or you can learn more by checking out their Wiki.
That is the gist, feel free to ask question below.
TIP: I strongly suggest creating a free TradingView account. If nothing else, create a BTC chart and add in a 12, 26, 9 MACD (called “MACD” in the “indicators” drop down) and a standard RSI indicator (just called “RSI”). Your BTC chart will at most times tell you everything you need to know about crypto as a whole (see “how alts [often] follow Bitcoin“). You have countless useful options like Bollinger Bands, GUPPY, etc… but MACD and RSI are good bread and butter indicators. Its more useful to look at a crypto chart with those than it is to just look at the line graphs on CoinMarketCap or the prices in Coinbase. Take the time to figure it out, you’ll be glad you did. 😉
TIP: Use the search bars at the top of the page to search for a crypto or other asset by its ticker symbol or proper name. For example, you can see this search for Bitcoin on TradingView.