The pencil icon will allow you to draw certain trend lines and set Fibonacci lines for technical analysis. These objects will be described further below.
You are able to draw three different kinds of lines: horizontal, vertical and trend lines.
For many technical analysts lines serve to be the ultimate technical analytical tools, as they are used for identifying market trends, support and resistance levels, as well as short term and long term patterns.
- Trend Line – The trend line can be drawn in any direction but requires two points.
- Vertical Line – The vertical line is simple and simply needs an initial direction.
- Horizontal Line – Similar to the vertical line, the horizontal line only needs an initial direction to set.
Sample trend line
Sample horizontal line
Sample vertical line
Fibonacci - is a very useful instrument for analyzing the chart.
The Fibonacci Retracement lines serve a very important purpose in analyzing charts; this tool will determine the support and resistance levels during market trends and is created to draw trend lines between two extreme points. The retracement will then split the vertical distances between pre-determined ratios.
By left-clicking the line, the entire object will be highlighted and you will freely drag it over the chart. If you wish to remove the object, simply left-click it and choose the Remove option.
In manually plot any type of lines, you can access the object in the following two ways:
- Double-click on the line
- Right-click on the line and select the Object Settings option from the context menu:
In the context menu that appears below you can choose either to Remove or change Properties.
This window allows you to customize the following properties:
Customized name of the trend line. The default name of the trend line is ‘Line’ with an order number, which is incremented by 1 for each trend line created within the individual instance of a chart. You can input up to 20 symbols into the textbox. Empty values are not allowed.
Simply left click on the color sample to open up the window for color selection.
This drop-down box will allow you to select the pixel width of trend lines.