In this video I want to take a look at three very basic tools and the technical analysis world you should
know how to use all of these and therefore you can set up your chance because technical analysis at
its core is simply marking up a chart with layer layers of interest areas he may want to buy or sell
areas you want to avoid that type of thing.
Using these tools allows you to do just that.
I'll be taking a look at levels.
I'll be taking a look at trend lines and I'll be taking a look at channels.
So first of all I would describe a level as simply a price it's a level on the axis going horizontally
on a chart.
You can go to the menu over here click on the line tool click on the arrow for the sub menu and go to
horizontal line by doing so you can then click on the chart and place a line you can place it wherever
you want.
You'll notice that the bubble has appeared.
So if you hold down the mouse and button and scroll you can see that the price can be moved back and
forth as I am doing here.
You can also for example right click on this dot and then go to format and you can change the price
manually.
So for example if I want sixty five hundred even I just click on that and it will take it right there.
I can also change the style and all of that as well I can think in the line as you see behind you I
can change the color as you see behind you as well.
And that allows you to customize the charts however you wish.
The nice thing when you click away and click on the chart and then it becomes inactive and it will activate
itself again if you hover over it.
If you change time frame so let's say I want to get into the weekly chart it stays right where it was.
So this is an important way to mark up the chart to give you an idea of important levels down the road
they might be on higher timeframes that may be market turning areas but on a shorter timeframe you may
not be thinking about the next markup would be the trend line.
Again go to the line menu click on the arrow for the sub menu and then click on trend line trend lines
are similar but they are diagonal in nature.
So you click on the chart you hold the button down and you drag right along click it again and then
there is the line again.
You can format it just as you did the horizontal line and color thickness then type of thing.
So you can see that this is an area where price continues to bounce from that is an uptrend line.
The exact opposite is a downtrend line.
So for example you can go out there and you can say that price has not been able to break above their
So that's the second very important markup that you'll need on these charts.
But one thing that I would do before I go on the channels this is kind of messy here so let's go and
clean it up right click in the chart somewhere away from any of the drawing go to remove it and then
remove all drawing tools and you have a fresh clean chart again now for channels you may notice that
in a particular part of this chart we have a channel going in a channel with simply that uptrend line
that I had mentioned previously but it's got a parallel uptrend line and you can see that in this area
here you could have bought sold bought sold but sold Centra and there's an entire theory of trading
behind channels and that's why they're so important.
You can do it.
One of two ways you can do it using just regular trend lines or like them or you can use the tool for
parallel channels which will give you a perfect parallel channel which is really what you're looking
for.
Click on the sub menu in the line chart for parallel channel.
It functions very much like a trend line in the sense that you drag it and then when you go to close
it you drag it.
In this case up and you can see that there is a purple area and of course you can format this just as
you can any other drawing.
So let's go ahead and make that a little bit lighter color maybe something like that would be the lines
and then the middle.
You can change that as well the background.
You can just take that out.
In this case I'm going to lighten that up to kind of a salmon color and you can see that completely
changed the mental line has appeared because I did that and that opens up a whole new world of trading
possibilities going back and forth between the buying and the selling.
These are very important drawing tools to understand in the platform.
And it will give you a leg up on marking up your charts again as I previously mentioned.
These do transfer to other timeframes.
So if there is an area that has been important previously it could be in the future and that's what
technical analysis is all about.
So stick with us and this next video will talk about support and resistance and the importance of that
as it is the basic fundamentals for all things technical analysis.