My TradingView Charts

My TradingView Charts

March 29, 2020 Off By Jeremy

 

I have recently spent more time using TradingView than TC2000. In this post I am going to talk about why and what my charts look like.

Before I get into that, I also want to say that my posting frequency has been a bit slow. As I mentioned in my last post, I had been on an assignment in China. I was supposed to stay until this month, but when COVID-19 started to break out there, my company pulled me back to Canada at the end of January.

Thank goodness for that!

I am now safely back in Canada, and did not catch the virus. Now here we are all in quarantine practicing good social distancing practices. The economy is bad, and will only get worse. I may even lose my job in the next couple of weeks.

That is ok though – will give me more time to do more of what I love the most – trading and making money in the markets.

At the end of March I am going to update how the tracked strategies have done in this bear COVID-19 market. That will be very interesting to see how things held up. Make sure you sign up for the newsletter to get informed when that post goes live.

Switching from TC2000 to TradingView

I have used TC2000 a lot in the past. I have written a few posts about it and how someone can use it to run the Stocks on the Move Strategy, trade Bollinger bands, or create Guppy Charts.

However, in the past 6-months I have switched almost exclusively to TradingView.

#1 Reason I Like TradingView

TC2000 is amazing for scanning for charts that meet your specific screening criteria. However, it is not very portable.

In other words, it does not work great if you are trying to use it while away from your main trading computer.

Granted, TC2000 has recently put out functionality that allows you to use the software via a web browser. It works ok, however I find it can be a bit slow. When I am trading fast moves, I need it to work fast.

TC2000 was built as local software in mind, and ported over to use web functionality.

TradingView on the other hand has been built from the ground up for use in a web browser, and it shows.

The fact that I can be away from my main trading computer at any time is a huge deal. I can run my scans quickly, see how the symbol I am trading is performing in real time, and make trading decisions according to my plan from anywhere.

TradingView SetUp
My Battlestation (need to do more cable management!)

Which TradingView Plan

I am a Pro+ member at TradingView. What that means is I have paid for the “privilege” of having a number of features unlocked. A number of these were very important to me, and in my mind worth the money.

The most important features of the Pro+ account that made me shell out more money includes:

  • Ability to have 4 charts per browser tab
  • Ability to view charts on two devices at a time (i.e. my main computer and my iPad Pro)
  • Number of saved chart layouts (this one is super important to me – you can see my chart layouts further down this post). I can have up to 10 saved chart layouts (versus 1 with the free version and 5 with the basic Pro version)

My TradingView Charts

Let’s walk through the chart layouts I have saved and use each and every day in TradingView.

TradingView Trade Planning Chart Layout

The Trade Planning chart is the layout I use to scan for breakouts happening at market open.

I will write about my Opening Breakout process soon, but simply put I look for stocks that are having big dollar moves on the 5-minute chart right at the open and then get in those stocks on the strong momentum and ride for quick gains.

This layout shows both the daily chart as well as the 5-minute chart as well as a scan set up specifically to find these stocks.

Trade Planning TradingView Chart Layout for Opening Breakout

TradingView Market Timing Chart Layout

On the Market Timing Chart layout I have four seperate charts set up that give me an indication of the overall trend of the market.

Are we in a bear or bull market?

In my non-trading accounts, I pay attention to the market and move to cash when the market is in a bad place. These charts help me understand that better.

TradingView Market Timing Chart Layout

There are four panels to this set up:

  • UNRATE Recession indicator (top left): If the US unemployment rate is greater than the 12-month moving average, that is a really good sign we are in a recession. To learn more about this, check out this article. On the bottom of this chart, I have an indicator set up that I have programmed using Pine (TradingView’s language – easy to use and I am NOT a programmer). When it is green, no recession. When it is red, we are most likely in a recession and probably a bear market.
  • S&P 500 10-Month Moving Average (top right): An easy way to tell if we are in a bull or bear market is if the SPY is above or below a 10-month moving average on a monthly chart. Meb Faber talks a lot about that in his book Global Value. In this chart, I compare the SPY to the 10-month moving average. If it is above, the the indicator on the bottom is green and we are in a bull market. If the indicator is red – like it is in this chart – we are in a bear market and traders needs to be cautious.
  • Hurricane Warning (bottom left): Another way to gauge how the market is doing is to check out the Hurricane Warning. This warning tells traders to be careful in the markets, because things are looking pretty violent out there. Things are green (good) when the 5-month moving average on the SPY is above the 10-month moving average. Things are red (bad), when the 5-month moving average is below the 10-month moving average.
  • Stocks Above the 200-Day Moving Average (bottom right): The final chart shows a line chart for the S5TH ticker. This ticker shows how many stocks in the SPY are above the 200 day moving average. Obviously, if most stocks are above the 200 day moving average, things are good. If not, then look out. Anything below a 20 is really bad. In addition, if readings are really high, then that may be a warning sign that things are frothy and a pull back may be coming.

None of these charts are meant to be trading indicators on their own. In other words, I don’t make specific buy or sell decisions based on any of these charts on their own.

What I do is look at all these charts in the overall context of the market to gain situational awareness of what the overall trend of the market is. That way I can determine how best to trade (long or short).

TradingView MOBO/HULL Trading Chart Layout

One of the systems I trade is based on two indicators that provide me with a short-term trend signal to trade the S&P 500.

Stay tuned to this blog to learn more about this system.

TradingView MOBO / Hull Moving Average Chart Layout

In a nutshell, the system goes long SPY when it breaks above the top MOBO band, and sells when it cross below the lower MOBO band. I also trade it in the opposite manner as well: go short SPY when it breaks below the lower MOBO band and cover when it breaks the upper bar.

As another confirmation of the short-term trend, I also use an 8-day Hull moving average. When the hull moving average is green and heading up, that is a long signal. When it is red and heading down, that is a sell signal.

The system is traded using two time frames, shown on the top-left and bottom-left charts: 2-hour chart and 4 hour chart. I like to see the 2-hour chart fire followed by the 4-hour chart for confirmation.

More to come on this system, including what trading vehicles I use to trade it. You can see two of the ETFs I trade in the top-right chart and the bottom-right chart: SSO and SDS.

Again, more to come on this system in future posts.

TradingView Intraday Trading Chart Layout

The last chart layout I am going to talk about today is my intraday chart layout.

TradingView Intraday Chart Layout

This layout is primarily used as a way to get a gauge on how the market is acting at a given point of time.

For example, I will use this layout to see what the market is going pre-market open and post-market close. That will provide me with an indication of what I might be up against when trading.

If things are heading down, tighter risk control is needed for example.

This chart layout includes three charts:

  • SPY 5-Minute Chart with Pre and Post Market (top-left): This chart shows me how spy is behaving through all trading hours, including pre and post market.
  • S&P E-Mini Futures 5-Minute (top-right): Similar to the top left chart, this chart just shows me how the E-mini futures are behaving. Just another way to confirm what way the market is trending on a short term 5 minutes basis.
  • VIX Volatility S&P 500 Index (bottom): The VIX is the fear-gauge of the market. The higher the volatility, the riskier the market is and the wilder the swings in prices are. That is both good and bad. Good in that if you have a system that can trade these swings, there is money to be made. Bad in that profits can be wiped out quick! I use the VIX at around a 16 as a cut off: any time the market is over that we are in riskier territory. Any time the market is below 16, then things are pretty calm.

Like my market timing chart layout, these are not necessarily trade indicators the way the MOBO charts are. Instead, they tell me what is going on with the market and how to adjust my trading plans.

What I Don’t Like About TradingView

When making the switch from TC2000 to TradingView, the #1 glaring difference is the scanning functionality.

TC2000 is WAAAAYYYY better at scanning for stocks than TradingView. The way TC2000 allows you to code for scanning criteria is a huge plus.

For example, it is easy to look for stocks that are consolidating on a 1-day chart in TC2000. Using criteria learned over at Stockbee’s site, it is easy to set up a scan to find stocks.

TradingView’s scanner does work, I just wish it was programmable like TC2000’sscanner is. It would be great to search for stocks using Pine language that meet some criteria based on indicators.

If you are listening TradingView, please make that a reality!

Summary

My decision to use TradingView almost elusively has been a process that has taken over around 6-months. It meets 98% of my needs over TC2000.

If only that scanning tool was better – programmable please!

I have been able to use it almost exclusively for all my trading needs. If you have experience with TradingView – good or bad – please head over to my Twitter page to comment on this post.

Feature Image: Carandoom