Trading tools like Tradingview can be thought of a bit like Excel. Their job is to do as much of the heavy lifting of analysis, applying defined statistical measures and indicators, but leaving you with the crucial challenge of understanding their relevance to future price movement.
The range of indicators and ways of filtering price data is enormous, so part of the challenge is deciding what you consider important.
Date Ranges
One of the most basic ways to filter data is by date range, which isn’t arbitrary. Looking at bitcoin’s price for the last day presents an entirely different perspective than the last five years.
As Technical Analysis generally – but not exclusively – focuses on short term positions, you’ll generally be focused on analysis within short timeframes.
That isn’t where date consideration ends, because a standard trading view will utilise candlesticks – an explanation of candlestick charts is covered earlier in our knowledge base. They allow a trader to understand price context within specified periods, visualised through narrow vertical rectangles, with what look like wicks at the top and bottom – together resembling a candle.
The wicks indicate price highs and lows, and the rectangle, price and open and close within the specified period. The colour of the wick tells you whether the price went up or down.
Trading view allows you to set the candlestick range, anything from 1 minute to 3 days; the opposing ends of that spectrum lend themselves to completely different trading strategy.
Trading within one minute intervals would focus on trying to make tiny margins multiple times, often through arbitrage. The much broader candle range is relevant for trading styles such as Momentum Trading.
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