5 Tools For Dips, Crashes, and Volatility

Feb 26, 2021

Volatility is challenging. But it can also be exciting if you're ready for it. In this idea we're going to show you five tools to make better decisions for when markets are volatile, choppy or bearish.

1. Invert Chart Your Chart 📉
Invert your chart to see how it looks turned upside down. Open a chart and type ALT + I on your keyboard. On a Mac, type ⌥ + I. This keyboard shortcut flips your chart upside down. Now ask yourself: would you buy or sell? Selling an inverted chart = bullish. Buying an inverted chart = bearish. Challenge your bias.

2. Regression Trend, Pitchforks, and Fib Retracements 📐
Certain drawing tools work better than others in volatile markets. That's because they are designed to measure dips, bounces, and statistical anomalies. For example, the Regression Trend tool shows upper and lower bands representing a number of standard deviations away from a trend line.Pitchfork drawing tools help you see trends or channels while having standard deviations plotted at the same time. You have access to four different Pitchfork drawing tools. Finally, there's Fibonacci Retracements. Harness the golden ratio to plan for bounces and possible levels of support.

3. Pine Script Public Library 👨‍💻
Seek help from others, especially the coders. Head over to the Pine Script Public Library and start exploring the scripts coded by other traders and investors. There are custom tools, strategies, and indicators for all market conditions. Remember, Pine Script is also how you can automate your strategy and create your own indicator. Remove emotion from your decision-making. Write your trading or investing rules in code.

4. The Long and Short Position Tool 🗺
Plan your trades before you make your trades. The Long and Short Position Tools are how you map out your trade ideas directly on the chart. Set an entry, an exit, and a take profit target. See your trade on the chart and visualize it. Planning your trades with these tools will save you a headache or two. Learn how to use the Long and Short Position tools here.

5. Education on TradingView 🎓
The Education section on TradingView is free and open to all. Here you will find thousands of publicly available guides to trading and investing. Each guide was made by a TradingViewer just like you. Learn about their strategy, how they approach markets, and what their processes are. You can also follow the authors, ask questions in the comments, and reach out for additional help.

Thanks for reading this guide! We hope you enjoyed it and please leave any questions or comments below. Also, please share your favorite tools for managing trades in a choppy market.

Feb 26, 2021

Note

We should add a very important note: we are only using the VIX as an example in this chart for volatility, as there was a lot of volatility this week. None of the tools shown on the chart are meant to be exact measurements or trade ideas. They are only examples of the drawing tools and how they look.

Yes, we really have to add this disclaimer. 😆