How to Use Chart Drawing Tools
Hello traders. Welcome to the cTraders tutorial and the second module, charting. In this lesson we’re going to learn how to use the chart drawing tools on the cTrader platform and to do so, we’re going to go to the actual platform and we’re going to change to a single chart view and I’m going to use the simple template.
Okay. So the first thing we’re going to do, we’re just going to go to a higher time frame and we’re going to go to the daily time frame on the GBP/USD.
All right. And the reason we wanted to go to the daily time frame is because as you can see for the past few days, the GBP/USD was just falling and falling, and it has fell for more than 350 peeps, and I really wanted to have some kind of a range to show you guys the drawing tools here on the cTrader platform. The first thing I wanted you to know is how to zoom in and zoom out on the chart. And to do so you’re going to go got the magnifying glass icon right here at the top of your chart and just click whether you want it to be zoomed in or completely zoomed out. We’re going to go ahead and leave it like this for the drawing tool demonstration, and I’m going to go ahead and point your attention to the right side panel, right below where the different layout buttons are.
I have chosen the cursor but you can also choose to have the cursor here for whatever chart drawing that you want. Now the first thing you want to do is go ahead and hover your mouse over the trend line. Right here you can choose to draw a vertical line. We’re going to draw one vertical line right here and of course, you can choose to draw a horizontal line, which we are going to right here at this level of support that the GBP/USD just broke very abruptly and of course we also have a trend line. We are going to also draw one for this demonstration. And to do so you just click on the first part and then drag it to the second. Now you have the trend line.
If you want to change the default colors and appearance of the trend lines, you just go ahead and hover your mouse over the trend line until you get this symbol under your cursor and right click on it. Here you can choose the type of trend line, the width of your trend line, and the color of the trend line. So we’re going to choose black, and we’re going to choose this type of trend line. And right here you can see that when you draw a trend line, it finishes at this point. It doesn’t go further. If you wanted to go further, you’d have to click on “extend to infinity.” By clicking on “extend to infinity,” the trend line will be extended and then you can use it for further balances or breakout trades.
Then you can go ahead and duplicate the trend line, which is a very cool feature because sometimes when you want to draw a channel, it’s very hard to draw a parallel line. And if you just duplicate the object, you now have two trend lines that are equidistant one from the other. And the same goes for the horizontal line, which right here is a support line. And of course, the vertical line, which we just planted it there for demonstration purposes. Now, this is basically how you’re going to be using the trend line, horizontal line, and vertical line at drawing.
Then we have the equal distance channel price, which is basically what we just did here by copying the first trend line, but if you want to draw an equidistant channel, you just click on the first spot and then go ahead and drag it. And then you can drag the second one up, and you can change the appearance also by hovering your mouse over it then right click in it, choosing the width, choosing the style, extend to infinity, and clicking on okay.
As you can see, we have two equidistant channels but one was drawn by copying or duplicating the trend line, and the other one was drawn by using the equidistant channel tool. I’m going to delete these objects, and to delete these objects you just click on the object until it’s selected and click delete on your keyboard. We’re going to delete everything, and we’re going to use the Andrew’s Pitchfork. To draw an Andrew’s Pitchfork, you click on the Andrew’s Pitchfork, you start by the low of the move and then you just move the pitchfork wherever you want to draw it. And of course, if you don’t know how to draw a pitchfork, I advise you to go to one of our courses where we have an entire lesson dedicated to it. And if you want to change the appearance, you should go ahead and right click on the object, choose the width, the style, the color, etc.
Now I’m going to delete the pitchfork, and I’m going to move to the Fibonacci retracement levels, which are basically the same. You just start from the bottom of the move to the high of the move. As you can see right here we have a ton of Fibonacci levels and on a color that is not very appealing to the eyes. So what we’re going to do here is we’re going to choose the default Fibonacci levels that we must use on our trading analysis. We’re going to change the color to a nice green and going to select this type of line. And we don’t use the 0, the 23, the 11 or the 38%. I use the 50, the 61.8, the 76.4, the 88.6, the 100, and the extensions I don’t use at all, on the retracements. I’m not talking about the extensions yet.
So basically, this are the Fibonacci levels that I use on my regular trading, so this is what I’m going to use as my default Fibonacci retracement level. As you can see here, I have, “Apply as default settings when drawing the Fibonacci,” and if I select another level, it will become a default too. And you can see right here, if I delete this Fibonacci retracement and I drew another one, the same levels will appear. And the same goes for the expansions and the Fibonacci fan.
Again, if you want to draw a rectangle, ellipse, or triangle, it is the same. You just click on the object you want to draw. For example, you want to point out this very important [inaudible 00:08:23] of support, you just hover your mouse, right click on the object, you want to feel the object, and of course, you can choose the color of the object. We are going to choose a nice purple and the opacity of the filling of the object too.
Every single drawing tool on the cTrader is very easy to use and as you can see, they are extremely efficient when it comes to doing your technical analysis.