How To Analyse Deriv On TradingView

In fact, TradingView has become one of the most popular platforms among traders and investors across different markets due to its extensive set of tools, advanced charting features, and community of like-minded traders.

By combining Deriv, a broker known for offering various financial instruments such as forex, commodities, synthetic indices, and cryptocurrencies, with the two, powerful trading strategies can emerge.

This guide will walk you through the essential steps and techniques for analyzing Deriv on TradingView.

Understanding the Market Instruments on Deriv

Before you can start analyzing, it’s important to understand the different markets offered by Deriv. This knowledge will help you choose the right tools and indicators to use for your analysis.

Forex Market

The Forex pairs are the most traded markets in Deriv. Examples include trading EUR/USD, GBP/USD, and USD/JPY. Every one of them has a different volatility, understanding which significantly enhances your decision-making while trading.

Synthetic Indices

Synthetic indices are proprietary to brokers found on Deriv. While they can mimic real market conditions, they do not have any direct link with the real world. These indices work best for traders who wish to trade around instruments that are immune to real-world news events and, therefore, more predictable.

Commodities and Cryptocurrencies

Deriv also offers various commodities, including gold, oil, and cryptocurrencies like Bitcoin and Ethereum. These markets are usually very volatile and require analysis using a different approach than for Forex pairs or synthetic indices.

Setting Up TradingView for Deriv

Before diving into how to analyze Deriv on TradingView, set up your TradingView account and ensure it’s connected to your Deriv account. Here’s how you can get started:

a. Create a TradingView Account

Visit [TradingView’s website](https://www.tradingview.com/) and create an account. If you have one, log in.

b. Connect to Deriv

Currently, TradingView does not have direct integration with Deriv, as it does with some other brokers. You can use the charting tools from TradingView in combination with Deriv by keeping an eye on the assets available at Deriv manually.

On TradingView, you will be able to chart assets such as forex pairs, commodities, and even synthetic indices if you manually select the assets available on Deriv. Also not to mention that Deriv allows their users to chart these instruments by using their platform itself, using TradingView adds another dimension for analysis.

How to Set Up Your Chart in TradingView

After you have been introduced to the markets, now is the time to properly set up your chart on TradingView for better analysis. The following are some tips for configuring your chart:

a. Choose Your Market Instrument

Within the TradingView platform, you can choose any of several thousand markets by typing the asset’s name in the search bar. As an example, you might simply type “EURUSD” to analyze the euro against the US dollar. If you’re interested in synthetic indices, look for relevant symbols like “Volatility 75” or “Crash 1000.”

b. Choose Your Timeframe

Next, you will need to choose a timeframe for your chart. The choice of timeframe defines the scope of your analysis. Shorter time frames are better for day trading and scalping, while longer timeframes do better for swing traders and long-term investors. You can choose from one-minute to one-month timeframes in TradingView.

c. Set Your Chart Style

TradingView offers various chart types, including candlestick, line, and bar charts. Candlestick charts are most commonly used for technical analysis because they convey more information. Select the chart type that suits your trading strategy.

d. Customizing Your Chart

Customize your chart by adjusting the grid, colors, and other visual elements. This allows for a cleaner, more focused view that helps you spot patterns quickly.

Technical Analysis: Key Tools for Deriv Analysis

Now that your chart is set up, it’s time to use technical analysis tools to understand price movements. Let’s explore the essential tools you’ll need.

a. Trend Lines and Channels

Trend lines are one of the simplest yet most powerful tools for defining market direction. They will help you spot whether the market is in an uptrend, a downtrend, or sideways. To draw a trend line on TradingView, click on the trend line icon in the left sidebar and click to connect the lows or highs of the price. Trend channels extend this concept by drawing parallel lines around the price trend. The channels then act like dynamic levels of support and resistance.

b. Support and Resistance Levels

Support and resistance levels are important for defining the price zones where the market might reverse or consolidate. The support is a price level at which the asset tends to find buying pressure, while resistance is a place where selling pressure usually takes place. To draw support and resistance lines in TradingView, click the horizontal line tool and place it at the price level where the price has previously reversed or stalled.

c. Moving Averages (MA)

MAs remain among the most frequently used indicators, used to smooth noise in price series and highlight trends. You will be able to use different sorts of MAs, namely SMA and EMA, according to your strategy in TradingView. For short-term traders, the 20-period EMA can be very useful, while long-term traders often use the 200-period MA. You can experiment with different periods and MA types to find the one that best suits your style.

d. Relative Strength Index (RSI)

The RSI is a momentum oscillator that measures the speed and change of price movements. It is normally used to show overbought and oversold conditions. If the RSI is above 70, the asset may be overbought, while below 30 indicates an oversold condition. The RSI is good for finding potential reversals, especially in synthetic indices where price trends can be very volatile.

e. Bollinger Bands

Bollinger Bands are volatility indicators that adjust based on market conditions. The bands widen during periods of high volatility and narrow during calmer periods. This tool is ideal for traders looking to trade breakouts or consolidations. In TradingView, you can add Bollinger Bands directly from the indicators menu. They are useful for gauging potential price moves and predicting periods of low or high volatility.

f. Fibonacci Retracement

Fibonacci retracement levels are always used to spot the probable areas of support and resistance. Drawing of Fibonacci lines from swing high towards the swing low, and vice versa, gives the area from where the price can reverse back or consolidate. These levels of retracement, once at 38.2%, 50%, and 61.8%, further help traders decide on entering and exiting.

Monitoring Deriv Markets Using TradingView’s Alerts

You can set up alerts for prices on TradingView to be always on top of the market. An alert will trigger an event when the price has reached a certain threshold. This will enable you to act in real time, without having to always watch the charts. Here is how you set them up:

“Right-click” the chart where you want to place the alert.
In the context menu select “Add Alert”.
Select the price condition you want: crossing a specific level, being higher or lower than a specific value, etc.
Choose the notification method: email, SMS, pop-up, etc.

This feature is very helpful for those traders who are mobile or working with several assets.

Combining Technical and Fundamental Analysis

While it’s essential to have technical analysis in place, combining it with fundamental analysis can bring more balance to your trading. Fundamental analysis considers news, economic events, and geopolitical issues that could affect Deriv markets. You can get all the news feeds on TradingView that will help you in this regard.

For instance, if you trade forex on Deriv, you should be sure to follow key economic reports that come out for the issuing countries of the currency pairs you’re trading, such as GDP, interest rates, and employment data. You can use TradingView’s economic calendar and news widgets to integrate this into your trading strategy.

Conclusion

Knowing how to analyze Deriv on TradingView provides a powerful platform for fine-tuning your trading skills. You can create a strategy using various charting tools, indicators, and customization options. Technical analysis, price alerts, and fundamental insights will combine to help you stay ahead of the market and make better decisions. Successful trading in Deriv, as well as in any other market, is impossible without regular practice, risk management, and discipline. TradingView allows you to make this true with its multi-purpose tools, making it a must-have in your arsenal of trading tools.

Frequently Asked Questions About How To Analyse Deriv On TradingView

Can I directly trade Deriv markets on TradingView?

No, TradingView does not have direct integration with Deriv. You can use TradingView for charting and analysis, then place trades manually on the Deriv platform.

How can I find Deriv’s synthetic indices on TradingView?

You can search for synthetic indices like “Volatility 75” or “Crash 1000” on TradingView’s search bar. Once you find the relevant asset, you can analyze its price movement using the platform’s technical tools.

Is TradingView free to use for analyzing Deriv markets?

Yes, TradingView does offer a free version with many great features, including charting tools, technical indicators, and basic timeframes.

How do I set up indicators on TradingView to analyze the Deriv market?

To add indicators, click on the “Indicators” button at the top of the TradingView screen. Search for the desired indicator (e.g., RSI, Moving Average, Bollinger Bands) and click to add it to your chart. Customize each indicator’s settings to your trading strategy.

What is the best strategy for analyzing synthetic indices on TradingView?

Volatility-based indicators such as Bollinger Bands and RSI are handy for identifying overbought/oversold conditions, especially in the turbulent times of Synthetic Index Markets.

Is it possible to combine fundamental analysis with my technical analysis on TradingView?

Yes, you can combine both kinds of analysis. You also have news feeds and the economic calendar available on TradingView to stay up to date with events worldwide that affect the market.