Although charts are freely available online, the tools used for charting are often subscription-based. Since charting is the number one tool for technical analysis, it is important to find a suitable platform that fits your needs.
Charting software is often found in the format of an online platform, but there are also desktop and mobile applications in some cases. Most offer free versions but keep in mind that they are quite limited and do not provide a full range of services. For example, you might not have access to more than five indicators, more than one chart for a trading pair at a time, and so on.
In this lesson, we will cover the most popular charting platform among cryptocurrency traders: Tradingview. Moreover, we will also explain what a charting platform is and showcase the benefits of free versus paid charting tools.
Before we venture into the best charting platforms, it is essential first to explain them.
A chart is simply a graphical representation of market data, such as prices and volume, which is plotted over a 2D graph. Charting platforms are software that enables traders to not only view charts but also draw over them and combine indicators to gain access to even more market data.
Charting software is essential for conducting technical analysis since no trader can tell future price action by prices and volume alone. It is important to draw price levels, trendlines, channels, fib levels, and other valuable items in order to effectively detect patterns that indicate whether an asset might take a bullish or bearish move.
Traders have access to either free or paid charting platforms. Most paid charting platforms have free versions or demos, but as we have mentioned previously, they are quite limited in terms of the number of tools offered.
We do not advise beginners to spend $30 a month for a subscription since new traders are not knowledgeable enough with technical analysis in order to utilize the full range of features offered by paid subscriptions. Instead, try experimenting with free stock platforms before moving onto more complex charting apps.
Free charting tools notably have price reporting delays, but that is limited purely to stocks. Investors can also encounter limited information in regards to volume or even no volume information in some cases. Again, while that might be the case for TradFi, it is rarely for crypto.
The most impactful difference is the number of available indicators. Free charting platforms often support a limited number of indicators. If they do, in fact, provide a large range of indicators, traders are most of the time limited to using one or two at a time. Traders may also be restricted from creating multiple charts at a time or saving existing ones.
On that account, paid charting tools are precious for traders. Subscriptions are relatively cheap, and some companies go as far as to provide free premium accounts for the first few months. The main reason why one should look into paid charting platforms is that they enable traders to use a diverse set of indicators.
On the other hand, it may not be well-suited to pay for subscriptions early on. Newcomers are still learning about TA methods and will therefore be unable to use the benefits offered by premium accounts.
Tradingview is regarded as being the best charting platform for cryptocurrency traders. Investors have access to stocks, metals, assets, commodities, and almost all cryptocurrencies. Moreover, Tradingview has an active community that shares ideas and custom-made indicators.
There are numerous subscription models, but a free version exists as well. Free accounts have access to three simultaneous indicators, more than 50 drawing tools, and 12 types of charts.
Those who upgrade to a so-called pro version can use up to 5 indicators per chart and have two charts per window. Pro accounts on Tradingview are ad-free, can access custom time intervals as well as real-time price data, and have the ability to set alerts.
The reason why TradingView is incredibly popular among crypto investors is the fact that it has an intuitive and easy-to-use interface. It is highly suitable for beginners, and the platform has its own educational wiki where it guides newcomers on how to use each tool.
From the perspective of useability, Tradingview is more than a commendable charting platform. However, there are more than enough alternatives to explore besides Tradingview.
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