Drawing Tools: Trendlines, Fibonacci, Patterns

TradingView isn’t just for looking at charts, it’s also for marking them up.

Drawing tools help you spot trends, mark important price levels, and plan your trades visually. It’s like using a pencil to highlight key parts of a textbook.

Let’s understand three of the most useful tools: Trendlines, Fibonacci Retracement, and Chart Patterns.

1. Trendlines – Visualizing the Market’s Direction

A trendline is a straight line you draw to connect price points, usually highs or lows, to identify the direction of the market.

Example:

If a stock like Infosys has been making higher lows, draw a line connecting those lows. That’s an uptrend line. If it breaks below this line, it might be losing momentum.

How to Use:

• Uptrend: Connect two or more lows
• Downtrend: Connect two or more highs
• Acts as support or resistance depending on the trend

2. Fibonacci Retracement – Spotting Key Pullback Levels

This tool is based on a mathematical sequence (Fibonacci series) but you don’t need to know the math to use it.

It helps traders identify potential reversal or bounce-back zones after a stock has made a big move.

Example:

Let’s say Reliance jumped from ₹2,000 to ₹2,400. You can draw a Fibonacci retracement from the bottom (₹2,000) to the top (₹2,400). TradingView will automatically show levels like 23.6%, 38.2%, 50%, 61.8%.

These levels are used by traders to see where price might bounce or reverse during a pullback.

How to Use:

• Select the Fibonacci tool
• Click the swing low, then drag to the swing high (for upward move)
• Key levels (like 61.8%) often act as support/resistance zones

3. Chart Patterns – Shapes That Signal Moves

TradingView offers tools to draw and mark classic chart patterns like triangles, flags, head & shoulders, etc.

These patterns are based on how price behaves over time. They help traders anticipate possible breakouts or reversals.

Example:

You spot a triangle forming on Tata Motors’ chart. Drawing the triangle helps you see that price is compressing. Once it breaks out, it might move sharply in that direction.

Common Patterns to Draw:

• Triangles (symmetrical, ascending, descending)
• Head & Shoulders
• Double Top / Bottom
• Flags and Pennants

You can draw these patterns using lines and shapes available in the Drawing Tools section.

Summary Table

Why Drawing Tools Matter

Charts can be overwhelming at first. Drawing tools simplify the noise. They give you a structure to understand what the market might do next.

And the best part? You don’t need to be an expert to start. With just a few clicks on TradingView, you can begin analyzing like a pro.