How to Add Trendlines to Your Chart

Access Free Content

Video Transcript:

Hello traders, welcome to the thinkorswim tutorial and the third module, charting. In this lesson I’m going to talk about drawings on your charts. And the reason why this is important is because drawings can be quite difficult for new users on the thinkorswim platform. You already know that I’m using a pointer and a crosshair too with my charts. If you want to add a drawing, you click on the Add Drawing button at the top of the chart, and you choose the drawing that you want.

For example, let’s add a trend line. When chosen, the pointer becomes the trend line, and to draw the trend line just click on one point of the chart and expand your trend line to another. And you can see that the cool thing about a trend line, the feature or the trend line drawing on the thinkorswim is that at the top of the trend line you have a number of bars. That price has moved from the beginning to the end of the trend line. You have the percentage move, the moving pips and the angle of the trend line.

Screen Shot 2015-10-26 at 14.22.28

Now, if you want to release the trend line, just click again on your mouse and the trend line is going to be released. Now, be careful because every time you draw on your chart, you have to go back to drawings and choose the pointer, so you don’t draw again a trend line on your chart. Now, let’s add another drawing to this chart. For example, let’s add Fibonacci retracement levels. You go ahead and click on the Drawing button at the top of the chart, and you click on Fibonacci retracement levels. But I’m going to show you another way to add drawings to your charts, and it’s this Quick button right here.

You can see that we have a pointer right now here at the bottom of the chart, at the bottom left of the chart. And if you click on that pointer, the active tool will give you the dropdown menu for the drawings on the chart. And it’s like a hot button on your charting platform. So let’s add the Fibonacci retracement levels. Where are they? They’re here. You choose to add the Fibonacci retracement levels. You click on the chart where you want the retracement, and then you click again when you want the retracements to end right here. The retracements are added to your chart. Again, you have to go back to the button to the end to choose to have a pointer so you don’t accidentally draw a second Fibonacci retracement on your chart.

Screen Shot 2015-10-26 at 14.22.48

Now if you want, for example, to zoom in and to zoom out on your chart, just click on a portion of your chart with the mouse held and unclick it where you want the zoom in and out to end and right there. That piece of the chart has been zoomed in by thinkorswim. If you want to go back to the full chart, just double click on the Chart and there you go.

Now, I’m going to show you how to customize drawings on your thinkorswim platform because the default settings on the thinkorswim drawings might not be as good as you want them to be. For example, if you choose to draw a trend line, you actually want this trend line to extend to the right because you don’t only want to connect one this high and this high, but you want the trend line to be noticed to the right for when the price hits it so you can go short or if it breaks you can go long, for example.

Now, if you want to edit the conversation on a drawing, just click on the Drawing. By clicking on the drawing you activate the drawing, as you can see here. It changes colors, and it shows you the starting point and the ending point of the drawing. Then hover your mouse on it until you have that double arrow cross and right click on the drawing. In this case, the trend line. Then just click on these Properties and now you can edit the properties on the trend line. And you can even name this trend line. Let’s name it “basic trend line.”

And the one we want here is we want to change the color of the trend line, and to do so just click on the Color and select the color you want. In this case, we want a black trend line, and we’re going to choose the black color. And we want it to have an extension to the right. So we are going to activate the extension to the right right here, and we are going to set this trend line drawing as a default. Why? Because every time we draw a new trend line, we want this basic trend line to be drawn on, not the default thinkorswim trend line that has no extension and is red.

Then we’re just going to click OK, and you can see that the trend line has changed. To delete a drawing, just click on the Drawing once. To activate it, and click on your Delete key on the keyboard. Now, if you activate the drawing and wait for the double arrow cross to appear when you hover your mouse over it and right click, you can duplicate the drawing on your thinkorswim platform.

Adam

More About

Adam is an experienced financial trader who writes about Forex trading, binary options, technical analysis and more.

View Posts - Visit Website

WordPress database error: [Table 'wp_investooprod.wp_icl_string_packages' doesn't exist]
SELECT CONCAT(kind_slug, '-', name) FROM wp_icl_string_packages /* From [www.investoo.com/how-to-add-trendlines-to-your-chart/] in [/nas/content/live/investooprod/wp-content/plugins/wpml-string-translation/classes/package/class-domains.php:34] */

Comments are closed.