Trendlines
MarketView charts support the use of both free-form and calculated trendlines. Trendlines are applied and managed in charts via the drawing toolbar.
Drawing Toolbar
The drawing toolbar is invoked by clicking on the "Show Drawing Toolbar" icon ( located on the standard Chart Toolbar.
·
Draw Line (
): This command button activates the free-form
drawing mode allowing the user to draw a basic trendline. Coordinates display
when drawing.
·
Draw Horizontal or Vertical Line (
): This command
button allows the user to draw horizontal or vertical lines through the
start point at a length equal to the value perpendicular to the end point
·
Draw Fibonacci
Fan (
): This command button allows the user to draw a Fibonacci fan line.
·
Draw Fibonacci Arc (
): This command button allows
the user to draw a Fibonacci arc.
·
Draw Fibonacci Retracement (
): This
command button allows the user to draw Fibonacci retracement lines.
·
Draw
Fibonacci Projection (
): This command button allows
the user to draw Fibonacci projection lines.
·
Draw Gann Fan (
): This command button allows the user to
draw a Gann Fan line.
·
Draw Threshold (
): This command button allows the user to
draw threshold lines.
·
Draw Pitchfork ( 
): This
command button allows the user to draw the Andrews Pitchfork lines.
·
Draw Arrow (
): This command button allows the user to
draw an arrow to assist in adding chart annotations.
·
Draw Box (
): This command button allows the user to
draw a text box to assist in adding chart annotations.
·
Edit Trendline (
): This command button allows the user to
select a trendline in order to change its orientation on the chart or to
manipulate its properties such as color or Y-axis alignment.
Additionally, you can delete a single trendline once it is selected.
· Select Color: This command button allows the user to change the color of the selected trendline.
·
Trendline Alignment (
) This command button allows the user to toggle the Y-axis orientation
of the selected trendline.
·
Select Line Width (
):
This command button allows the user to change the with of the trend line they
have selected. Size ranges from 1.0pt - 3.0pt
·
Remove Selected Trendlines (
): This command button allows
the user to change the color of the selected trendline. This action
cannot be undone.
·
Clear Trendlines (
): This command button clears
all trendlines from the chart. This action cannot be undone.
Editing Trendlines
Trendlines are edited by "toggling" to select mode using the Edit
Trendlines command button ()
and selecting the desired trendline using a single left mouse click on any of
the visible handles or square boxes on each end of the primary line. The
trendline's size and position is then adjusted by using the left mouse button
and “dragging” the primary line’s end point to a new location. The trendline
redraws to reflect the new coordinates of the primary line
Copy
To copy an existing trendline, perform the following actions:
·
Toggle to select mode using the Edit Trendlines
command button ().
· Hold down the Ctrl key on the keyboard.
· While holding down the Ctrl key, left mouse click on the desired trendline.
· Using the mouse, move the copied trendline to the desired location.
Move
To move an existing trendline, perform the following actions:
·
Toggle to select mode using the Edit Trendlines
command button ().
· Hold down the Shift key on the keyboard.
· While holding down the Shift key, left mouse click on the desired trendline.
· Using the mouse, move the existing trendline to the desired location.
Extend
To
extend a trend line click the Edit Trendlines command button (). This will display ‘handle bars’
on the ends of the lines (
). Double
click one or both ends of the line to extend them to infinity.
Trendline Definitions
Fibonacci Fan Lines
Fibonacci Fan lines are displayed by drawing a trendline between two extreme points, for example, a trough and opposing peak. Then an "invisible" vertical line is drawn through the second extreme point. Three trendlines are then drawn from the first extreme point so they pass through the invisible vertical line at the Fibonacci levels of 38.2%, 50.0%, and 61.8%.
Fibonacci Arcs
Fibonacci Arcs are displayed by first drawing a trendline between two extreme points, for example, a trough and opposing peak. Three arcs are then drawn, centered on the second extreme point, so they intersect the trendline at the Fibonacci levels of 38.2%, 50.0%, and 61.8%. Note that the points where the Arcs cross the price data will vary depending on the scaling of the chart.23.6% and 78.62%
Fibonacci Retracement Lines
Fibonacci Retracement is a three-line indicator with 0 and 100 hundred applied as upper & lower bounds. It is displayed by drawing a trend line between two extreme points, for example, a trough and opposing peak. An "invisible" vertical line is drawn through the second extreme point, then three trend lines are drawn from the first extreme point so they pass through the invisible vertical line at the Fibonacci levels of 0, 23.6, 38.2, 50.0, 61.8, 78.62, and 100 percent. The primary, 0.0%, 100% are solid lines while the others are dotted.
Fibonacci Projection Lines
Fibonacci Projections are similar to the retracement in that they forecast areas of support and resistance. The extension however goes beyond the standard 0%-100% to allow for the user to determine areas where they wish to take profits. The projections beyond 100% include 161.8%, 261.8% and 423.6%.
To use the Fibonacci Projection drawing tool, the user needs to select the icon then click three individual points in the chart plotting area. After the third click the projection will be built. The values needed for each point calculated are:
- The selection order sequence
- The selection date
- The selection price value
If data point 2 is greater than data point 1 then the projection from point 3 will be upwards
If data point 2 is less than data point 1 then the projection from point 3 will be downwards
The calculations all begin at data point 3 with a value of 0%
The calculation for the projection is DataP3 + ((DataP2 - DataP1) * Fib%)
Gann Fans
Gann Fans are displayed by drawing the primary line at the equivalent of a 1x1 relationship to the scale of the chart. Two lines are then drawn “above” and “below” the line at the following intervals:
· 1 x 4
· 1 x 2
· PRIMARY LINE - 1x1 relationship between X and Y axis
· 2 x 1
· 4 x 1
When drawing a Gann Fan, the user is prompted with a dialog to set options for drawing of the Gann Fan:
1. The user is first prompted to select the Y-axis increment to be used in the 1x1 relationship. This value will be editable (free form) and labeled as “Points per bar”
o X-axis increments will be determined using the period selection of the chart (e.g. daily, weekly, etc.).
2. The user will be prompted to choose which direction the lines will be drawn.
o It is assumed that the line to be drawn from left to right across the chart.
3. The user will have the option to select drawing the lines up or down.
o This option will be presented with two checkboxes labeled “Down Right” and “Up Right”.
The user can invoke the dialog again to change these settings via a right-mouse click menu. The drawing of the Primary Line is dictated by the application using the 1x1 relationship defined by the user. The user is only able to change the line by adjusting the 1x1 settings.
Threshold
Threshold lines are displayed by drawing a single primary line. The height or rise of the line is used to determine the Y-axis coordinates for two horizontal lines drawn “above” and “below” the lowest Y-axis value of the primary line. An additional third horizontal line is draw through this lowest Y-axis value.
Andrews Pitchfork
Andrews pitchfork is displayed by drawing three separate points on the
chart. The first point is typically placed at the beginning of an upward trend.
The second point is placed near or at where the trend starts to reverse. The
third point is placed where the trend reverses again. After placing this third
point on the graph, the pitchfork will be drawn. The pitchfork can be moved,
copied, colored and resized just like the other trend line options