Appendix 1: Tradingview.com – best platform for trading with supply and
demand
Choosing a good trading and analysis platform is considered the most underrated task in
trading. A good trading platform not only helps you with market analysis but also saves
your time and shortens your learning curve dramatically.
This Appendix is about one of the best analysis platforms during the past 10 years that I
believe can make your trading much more convenient: Tradingview.com (hereinafter
referred to as Tradingview).
Tradingview is one of the most advanced and user-friendly charting platforms for analysis
purposes. It is a browser-based platform, meaning that you won’t have to do any software
installation. Also, you can get access to all of its features on both computer and mobile
devices.
Tradingview provides traders with real-time data to do their analysis. One interesting
feature Tradingview has is tons of trading indicators coded and uploaded by different
users, traders, and coders, and you can enjoy them for as little as zero dollars (a free
account).
Also, tradingview offers great learning materials where traders upload multiple trade
ideas through the publishing feature. This is especially useful for new traders because they
can learn a lot from experienced ones as well as get access to many trading and analysis
styles. More often than not, they can find some trading styles that suit them, from that
they can develop both technical, managerial, and psychological skills to progress in this
endeavor.
In the next sections, we’ll show you step-by-step how to trade supply and demand
on tradingview using some of its sophisticated tools and functions.
Create your Tradingview account
Currently, Tradingview has four subscription options for you to choose from: Basic, Pro,
Pro+, and Premium.
It’s perfectly understandable to start with a Basic plan, which is what most traders do.
This package is completely free, and you can still enjoy most of the platform features. If
you want to enjoy more features, simply upgrade your plan, either through a yearly
subscription or a monthly subscription. The yearly subscription plans may save you up to
50% of the fee.
One of the most noticeable features when upgrading your package is you can monitor
more than one chart on the same trading screen. For example, the pro package can allow
two different charts on the same screen. Or, you can enjoy up to 4 charts on the same
screen when subscribing to the pro+ package.
Customize your Tradingview chart
When you first log in to your Tradingview account and open a trading chart, you will see
a chart like the one below.
This default setting is quite intuitive, but as a trader, you may want to make some changes
to suit your needs more. Don’t worry! This is as easy as pie.
If you want to change any color in the candlesticks, just right-click anywhere in the chart
to open a drop-down menu, then click on “setting” and start changing colors to your
liking. Click “ok” to confirm your modification.
You can save your changes in a template. The benefit of doing this is that you can avoid
setting up everything again each time you open your chart.
To do that, locate your cursor to the top right of the chart, then rename the layout from
“unnamed” to whichever name you want. Also, you can create as many templates as you
want.
After renaming the template, click save, and done. From this time onwards, you just need
to locate the naming panel of the tool bar, then choose the template you want. In this case,
the template is named “Pro_1”.
Multiple chart layout
You won’t have to switch from one chart to another to see whether it aligns with each
other, which may take more time and is less intuitive.
To display different charts at the same time, simply click on the square box at the top
navigation bar to open a drop-down menu, then choose the layout you want. As you may
remember, using the pro+ version, we can open at least 4 charts simultaneously.
You don’t need more than three charts simultaneously, which may cause some
unnecessary confusion. As I mentioned, 2-3 timeframes are enough to grasp a big picture
of the market and to identify the entry, stop-loss, and exit prices.
Also, if you’ve inserted an indicator on a larger timeframe (for example the monthly chart)
and you want it to appear on lower timeframes (weekly and daily charts), simply rightclick anywhere in the chart and choose the “apply these indicators to entire layout”
function in the drop-down menu. Doing this, the indicator will be synced through all
charts, which saves you a lot of time.
Insert Indicators On The Chart
Even if you’re a big fan of price action trading, you shouldn’t skip technical indicators.
They tell you a lot about price momentums on the chart and can be good confirmation
signals in many cases.
To add indicators on your chart:
Go to the navigation bar and click the “Indicator” symbol on the bar. A new window will
be opened, where you type the name of the indicator you want to insert, and then choose
any from the script name below the search term. Done, the indicator is inserted on the
chart.
Whenever you’ve inserted an indicator on your chart, a small toolbox will appear at the
top left corner of the chart. It lets you customize, hide, or remove the indicator when you
no longer need it.
There are a lot of customization steps on your chart, and you may want to save all these
changes on your template. To do this, you need to click on the small arrow next to your
template again to open a drop-down list. Then you can choose to turn on the autosave
feature so that all the changes are automatically saved whenever you make them.
Otherwise, you’ll have to manually save these changes.
Tradingview indicators
Trading supply and demand has a lot to do with identifying demand or supply zones and
drawing the proximal and distal lines correctly.
If you use installation-based trading software, you may sometimes find it hard to
determine the basing structure for your trade purposes. Instead, by using Tradingview,
you can enjoy tons of trading indicators coded and uploaded by a lot of community traders
to facilitate your identification process.
In the next section, we’ll discover some indicators that greatly help you with identifying
and drawing supply and demand zones.
1. Boring candle indicator
A base candlestick is, more often than not, a small candlestick with the body not exceeding
half of the candlestick’s range. We call it a boring candlestick because it doesn’t indicate
a strong momentum. On the other hand, if the candlestick’s body occupies more than half
of the candlestick’s range, it is referred to as an exciting one, implying that it has a
potential momentum.
The boring candle indicator helps you to identify boring candlesticks on the chart, from
those you can draw the proximal and distal lines quicker, especially if you are a newbie.
When detecting a boring candlestick, the tool will color these boring candlesticks blue and
you can identify potential areas at a glance.
To employ this indicator, simply search for “boring candle” and click on the result
developed by SurjeetKakar.
All the boring candles will be automatically highlighted in blue at once.
Using the rectangle tool at the left of your chart, you can easily draw demand and supply
zones on your chart.
2. Bullish and Bearish Engulfing Indicator
The next indicator in the list is the Bullish/Bearish Engulfing indicator by
AlfonsoMoreno.
The name of the indicator says it all. This indicator helps you to identify an engulfing
pattern, both bullish and bearish.
If you have a boring candlestick followed by an engulfing one, this may be a good sign of
a potential market reversal. In the example below, the bullish engulfing candle is colored
green while the bearish one is in red. These are default colors and you can definitely
change them in the settings section.
In another chart, both boring candlesticks and engulfing candlesticks are shown on the
chart.
In this chart, a strong bullish engulfing pattern fully engulfs the two previous candlesticks,
signaling a strong bullish momentum in the price. We draw a demand zone based on the
base candlestick (a boring candlestick). Notice how the price left the zone in a strong
fashion indicated by the long bullish candlestick. The price did remember this zone and
visited it before continuing its strong rally-up.
3. Demand and Supply Zone indicator
This indicator makes your task as a trader much easier because it highlights the boring
candlestick, the ERC (Extended Range Candlestick), and marks the demand or supply
zone on the chart as well. It is called Demand and Supply Zone v1.3 by Muthushun.
In the chart below, the dark ones are ERC while the blue ones are boring candlesticks. DZ
stands for demand zone while SZ stands for supply zone.
4. Engulfing Detector Indicator
The last indicator in the list is called Engulfing Detector (Supply and Demand) developed
by BitcoinJesus.
This indicator nearly does a lot of work for you where supply and demand zones are drawn
on the chart using the engulfing pattern. However, this doesn’t mean you can blindly use
them for trade purposes. The scoring system must be employed in this case to filter out
low probability trade zones.
Along with relying on this indicator, you should practice drawing supply and demand
zones by yourself because only through your observation and analysis can you best
understand and master the art of drawing, optimizing, and making good use of trade
zones on the chart.
Backtesting Supply and Demand With Tradingview
This is probably the most important but overlooked feature in using Tradingview.
First, let’s talk about backtesting. Many traders will consider it a boring activity. They love
making money, they love profits. They just don’t like looking back into history to learn
about events that can’t be changed. However, almost every professional trader would
agree with me that backtesting is undoubtedly a game-changer in trading.
Before the development of this online platform, traders have to buy fancy software for
backtesting purposes. Tradingview can now allow you to discover the backtesting on daily,
weekly, and monthly charts for free. Concerning timeframes lower than the daily one,
you’ll need to upgrade your package to enjoy.
Using the backtesting feature on Tradingview is as easy as pie. To enjoy this feature, go to
the top bar and click on the “replay” as shown on the chart below.
The red line marks the starting point for the backtesting process. Adjust it to whenever
you want. Once you’ve chosen the starting time, the entire candlesticks to the right of the
vertical line will disappear.
This feature also lets you adjust the speed at which candlesticks are displayed. You can
move one candlestick at a time if you want, using the forward button.
Any strategy should be backtested before putting it into real use. The minimum
recommended period for backtesting is one year. In general, the more, the better. If you
need a detailed tutorial on this technique, visit https://bit.ly/327AXVN.
In short, Tradingview is, from my experience, the best analysis platform so far thanks to
four great characteristics: the best user-friendly interface, a lot of constantly optimized
technical tools, a great community for learning purposes, and the fantastic backtesting
feature. You won’t find any other trading platforms with all of these features available
simultaneously. Another important advantage when using this platform is that you can
enjoy these features for as little as zero cents. In a world where everything has shifted to
a browser-base, Tradingview deserves the attention of all traders.