Most new traders don’t know the importance of great charting software. When looking at the charts, you'll see that there is a variety of different tools that can be used in order to enhance your experience. Here, we've provided a guide of some helpful tips and insights into the most important features and also shared some lesser known functions that allow you to leverage your use of the chart function's strengths and improve your trading at the same time.
When you navigate to the charts, as shown below, you'll see a variety of different tools that can be used in order to analyse a particular asset's performance.
As you can see there's a fair few tools to choose from here. As such we've made the below attached guide to breakdown each set of chart tools and help you use all of the instruments at your disposal.
First, we'll breakdown those available along the top toolbar. Here you'll see the 5 tools shown below.
Time Interval (1) is the Candle time frame - this one determines the time frame that each of candles shown on the chart represents. For example, if set at 5 minutes, each candle will cover a 5 minute period of time and show the movement and high and lows of that period of time.
Candle Style (2) here allows you to change the type of chart used to show the history of this asset. When selected it will present the below attached drop down menu, allowing you to change the chart type to any of the below listed options.
Indicators (3) here allows you to input any of the indicators typically used on a trading chart. Using trading indicators is part of any technical trader’s strategy. Paired with the right risk management tools, it could help you gain more insight into price trends. These indicators include Volume, Bollinger Bands, Correlation Co-efficient, Historical Volatility, Relative Strength Index (RSI), Money Flow Index (MFI) etc.
VOLUME: Try adding the Trading Volume indicator to your chart.
Trading volume refers to the amount of a cryptocurrency that is exchanged over a specific period of time. In the screenshot below volume is displayed at the bottom in the form of a bar graph, with each bar representing a 4 hour interval.
Undo/Redo (4) here is the undo and redo options. These options, allow you to undo the change you have just made and then reapply it if you wish respectively.
Ask/Bid (5) each asset listed on the platform will always have an ASK and a BID, which can be tricky to understand at the start. The Bid Price represents the maximum price that a buyer is willing to pay for an asset and will be the sale price of the asset. The Ask Price represents the minimum price that a seller is willing to take for that same asset and as such will be the buy price of the asset. As such each price will have a different history for it's Ask and Bid price which using this button, you can switch between to see the history of each price for the asset. The difference between the Bid and Ask price is known as the Spread.
The items on the Top Right Toolbar allow you to customize and share your charts.
Settings (1) Useful features here is the ability to change the colours of the candles on your chart! As well as altering the Last Value line and which side the Price Scale is on.
The Background Tab, allows again for further customisation of the chart area.
Full Screen Mode (2) makes the chart cover the full screen and can be entered and exited by pressing the same icon, or the escape key on your keyboard.
Screenshot (3) takes screenshots of what your currently viewing on the chart, this is prefect for journaling and keeping a visual record of your trades.
Next, we'll breakdown the features on the Left Toolbar. There are plenty of different options and features to become familiar with, but we'll cover the most frequent ones below.
Trend Lines & Arrow Tools
Trend Line A click and drop trend line you can draw from two points on the chart, once placed it can be clicked and modified as you see fit. You'll notice once you click the Trend Line function, a toolbox will open - allowing you to further customize the trend line (eg. colour, style, thickness of line).
Horizontal & Vertical Lines Place a continuous line across the span of the chart. You can click and move these lines as you like. Similar to the Trend Line tool, you'll notice a toolbar opens allowing you to change the colour and style of the line.
Ray Tool & Horizontal Ray A Horizontal Ray places a continuous line, similar to the horizontal line tool, but the difference is it only extends only to the right of the chart, the below chart demonstrating an example (green line).
Similar to the Trend Line, the Ray tool (orange line), can be placed to draw a continuous line across the chart.
Arrow Tool along with all other charting line tools, are able to be placed on all areas of the chart, including indicator windows.
Other Handy Tips
Customise Using the settings function you can further customise the objects drawn on your charts!
Notes allow you to place notes on your line tools, via the Style tab.
Visible Timeframes allow you to choose where you want to see the lines your drawing, via the Visibility tab.
Text, Brush and Drawing Tools allow multiple options to further customize your charts. These allow you to visually play out any strategies you have adopted into your trading and follow their progression on the charts.
Line based tools Below we show how you can draw these ones on your charts and they can be useful.
Pitchfork tool can be helpful for drawing channels and fixed support resistance zones of interest to you, as per your trading strategy. Below is an example of what the pitchfork tool will look like on your chart, and the sequence you need click to apply the tool. You can change the style and colours of the pitchfork using the associated floating toolbar.
Fibonacci Retracement levels connect any two points that the trader views as relevant, typically a high point and a low point. The horizontal levels are interpreted as Support and Resistance levels. The most commonly used ratios include 23.6%, 38.2%, 50%, 61.8%, and 78.6%. These levels should not be relied on exclusively. but offer a useful tool in a trading strategy.
By clicking the settings icon in the toolbar for the Fibonacci Tool, you'll see that it can be modified. This allows you to set your Retracement Levels, noting there also are visually helpful tools such as Extended Lines, Levels, and Prices to appear on the chart. You can set the colour for each retracement level & background, furthermore, there is also a box to select a single colour for all levels.
The visibility tab can also be helpful, to show/hide the Fibonacci Retracement on specific timeframes.
Pattern Tools Allow you to visualise pattern and price action strategies such as Elliot Waves and Head and Shoulder. We'll walk through these two in particular below, as an example of how to apply these tools.
Elliot Impulse Wave (12345) Impulse wave theory consists of five sub-waves that make net movement in the same direction as the trend. To start drawing this line, select the drawing tool, and click at the first impulse of significance. You can then select the remainder impulses, to create the visual representation of an Elliot Wave.
Head and Shoulders Tool allows the price action pattern to be applied to your charts. Getting the pattern to draw out can be tricky, below is an example of the sequential order to click each point. As shown below, you'll note the drawing tool starts from the left shoulder moving to the head and on to the right shoulder. Another key reference point of the head and shoulders pattern is the Neckline, which can be observed as a horizontal line from points 1-7 as shown below.
Position & Range Tools provide very useful information when building an entry and exit strategy for your market positions.
Long Position Tool can be used to help calculate and visually see the potential up-side and down-side of your trades. There are three inputs used for this tool: the Entry Price (1), the Target Price (2) and the Stop Price (3).
Using the settings function on the floating tool-bar, as shown above, you can also type these figures in manually, as well as change the style and visibility of the position tool.
Looking closer at the information outputted by the tool, we can begin to understand how we can use this one to our advantage. Both the Target and Stop bars will show a movement of price as a percentage gain/loss (1), as well as the overall movement in the asset price as a gain/loss (3).
An important figure to take into account when using this tool is the Risk/Reward Ratio (2). The risk to reward ratio is fundamental when assessing your overall trade performance, it provides a very powerful way to evaluate your trade. Other items you're able to edit in the settings menu, are the position size/qty, and also your account balance and risk
Date & Price Range Tools can be used to measure points of interest on the chart, in their respective ranges.
Symbol Tool Get creative and customize your charts! You can adjust the size, colour, and visibility of these symbols via the settings symbol when you place the symbol.
Ruler Tool is a quick and easy way to measure the distances between two points of price and time on the chart.
Zoom Tool can be used to analyse a particular area of interest, and return to your original view.
Magnet Tool makes life easy, when trying to draw from exact high and low points on candles. You'll notice your cursor automatically snap to the Open, High, Low & Close of the candle as you move close enough with your mouse.
Additional Tools and Functions
Stay in Drawing Mode (1) when drawing objects, turning this mode on will continuously draw without having to choose the object tool again. For example, while drawing trend lines, after the first trend line is completed the cursor will let you draw another without having to select trend line again. This repeats until you unselect the object being used, or turn off the Stay in Drawing Mode function.
Lock Drawings (2) if selected will stop any drawings from being edited or moved from their current positions.
Hide/Show Drawings (3) does not remove any objects from your chart, but will temporary hide all drawings from the current chart.
Object Tree (4) provides a break down of all the current objects on the chart.
Objects can be locked, hidden, deleted and settings edited via the cog icon.
Remove/Delete (5) when opened on the toolbar, can be used to delete only drawings, indicators or all items on the chart.
We hope this has been useful resource in giving a broader idea of what can be achieved by the Swyftx charting software. Don't be afraid to click and try new things, trade safe!
If you have any further questions or need a hand with anything else, please don't hesitate to get in touch with us via live-chat.
Historical data is provided by our Digital Asset Data friends at Kaiko.